: Mumbai, February 12, 2025

 

The officers of the Thane CGST Commissionerate, under the CGST Mumbai Zone have busted a fake GST invoice racket involving fraudulent transactions worth ₹140 crores. The operation was designed to avail fraudulent Input Tax Credit (ITC) amounting to ₹26.92 crores. Following an investigation, Mr. Kapadiya Mahamad Sultan, the mastermind behind the racket, has been arrested for creating and managing 18 fake firms to facilitate proxy and dummy transactions. Mr. Sultan, a resident of Mira Road East, Thane was accused of creating a network of fake firms to generate fraudulent invoices and illegally pass on ITC without any actual supply of goods or services. The investigation revealed that over 18 dummy entities including Royal Enterprise, Saraswati Enterprises, Lucas Infratrade LLP and Maruti Trading were established solely for the purpose of defrauding the government. To carry out the scam, Mr. Sultan misused Aadhaar, PAN and other KYC documents of individuals, which he obtained in exchange for money. He then used these credentials to fraudulently secure GST registrations and open bank accounts under the names of fake firms. Furthermore, in statements recorded under Section 70 of the CGST Act, 2017, he admitted to availing and passing on fraudulent ITC.

The authorities arrested Mr. Kapadiya Mahamad Sultan under Section 69 of the CGST Act for violations under Section 132. He was presented before the Chief Judicial Magistrate, Thane, on February 11, 2025 and has been remanded to 14 days of judicial custody. Further investigations are underway.

 

EC/PM

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