Ministry of Finance
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CGST Commissionerate Mumbai East unearths fake tax credit network and arrests one

Posted On: 20 MAY 2022 3:40PM by PIB Mumbai

Mumbai, 20 May 2022


The officers of Anti-Evasion wing of CGST Commissionerate Mumbai East of Mumbai Zone have unearthed a fake Input Tax Credit (ITC) Network and arrested the Director of a Kurla based company for GST fraud.

Acting on a tip off received from Central Intelligence Unit of Mumbai zone, an investigation was initiated against M/s Lakshin Metals Pvt. Ltd. which revealed that fake Input Tax Credit (ITC) of Rs.15.26 Crore was availed and passed on without actual receipt or supply of goods, in gross violation of provisions of the CGST Act, 2017. For this fraud, a web of around 15 entities was created and bogus invoices of more than Rs. 84 Crore were issued.

During investigation, statement of a director of this company was recorded, wherein he admitted his role in this GST fraud. He was arrested on 19.05.2022 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017. He was produced before the Hon’ble Additional Chief Metropolitan Magistrate, Esplanade today on 19.05.2022. The Magistrate has remanded him to  judicial custody for 14 days.

The officers of Central Intelligence Unit are using data analysis and network analysis tools to identify potential fraudsters and sharing the details with jurisdictional Commissionerates for investigation. This case is a part of special drive launched by the CGST Mumbai Zone against the fraudsters and fake ITC network dealers, who have been causing un-healthy competition for the honest taxpayers. 

During the financial year 2021-22, the CGST Mumbai East Commissionerate had detected GST evasion of Rs. 1002 Crore, recovered Rs. 124 Crore and arrested 2 tax evaders. CGST Mumbai East Commissionerate will intensify the drive against the fraudsters and fake entities, engaged in availing and passing of fake ITC, in the coming days.


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(Source: CGST Mumbai East) | PIB Mumbai | SC/DR


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