Mumbai : 13 May 2022

Thane Central GST Commissionerate has busted a fake GST Input Tax Credit (ITC) racket and arrested the proprietor of a Dahisar based firm.

Acting on a specific input from Central Intelligence Unit of CGST Mumbai zone, the anti-evasion wing of CGST Thane Commissionerate initiated an investigation against M/s. J. J. Lime Depot, which deals in trading of construction material.

Investigation revealed that this firm had fraudulently claimed input tax credit of Rs. 8.05 Crore in its financial records. This firm had also issued bogus invoices of more than Rs. 40 Crore for passing on of this tax credit, without any supply of goods, in gross violation of  provisions of the CGST Act, 2017. In his statement, recorded during the investigation, the proprietor of this firm admitted that he had issued fake invoices to many Mumbai based infrastructure companies, for commission.

He was arrested on 12.05.2022 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017. He was produced before the Hon’ble Chief Metropolitan Magistrate, Esplanade today on 13.05.2022. The Magistrate has remanded him to  judicial custody for 14 days.

The CGST officers are using data analysis and network analysis tools to identify potential fraudsters. During the financial year 2021-22, the CGST Thane Commissionerate had detected GST evasion of Rs. 1354 Crore, recovered Rs. 34 Crore and arrested 7 tax evaders. CGST Commissionerate Thane will continue its drive against tax evaders in this financial year too.

Thane CGST Commissionerate/ CP/PM

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