Mumbai: 4 January 2022

The officers of Thane CGST Commissionerate of Mumbai Zone have busted a fake Input Tax Credit racket involving GST of Rs 22 Crores. Acting on a tip-off from Central Intelligence Unit, Mumbai CGST Zone, the officers have arrested two businessmen who happen to be father & a son duo, who are the proprietors of two separate firms M/s Shah Enterprises &  M/s U.S. Enterprises  located at Kandivali West, Mumbai. Both the firms are registered with GST for trading in Ferrous Waste and Scrap etc.  and were indulging in fraudulent availment and passing of Input Tax Credit (ITC) to the tune of Rs 11.80 crores & Rs. 10.23 crores respectively without receiving the goods or services, in violation of the provisions of CGST Act 2017. Both these firms were availing fake ITC from the fake entities and passing on the same to other entities of this vicious network. 

Both of them were arrested under Section 69 of CGST Act 2017 for contravention of Section 132 of the Act and produced before the Hon’ble Chief Metropolitan Magistrate Esplanade, Mumbai today and who has remanded them to 14 days’ judicial custody.

This operation is a part of large-scale effort by CGST Mumbai Zone to stamp out fake ITC networks, which have been causing unhealthy competition with Honest Taxpayers and defrauding the Government Exchequer of its rightful taxes. The department is going to intensify the drive against the fraudsters and tax evaders in the days to come.

Thane GST Commissionerate/CP/PM

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