CGST, Mumbai busts fictitious entities availing Input Tax Credit against Fake Invoices; fraudulent transaction of Rs. 6.23 Crore

CGST, Mumbai busts fictitious entities availing Input Tax Credit against Fake Invoices; fraudulent transaction of Rs. 6.23 Crore

Special Drive detects Tax Evasion of Rs. 3,500 Crore so far; Rs. 460 Crore recovered

Anti-evasion Wing, Central Goods and Services Tax Bhiwandi Commissionerate, Mumbai have busted a network of fictitious entities in Maharashtra. The entities were involved in availment and utilisation of Input Tax Credit (ITC) against fake invoices without actual supply of goods. Searches were conducted at more than a dozen locations at various premises located in Navi Mumbai, Thane and Palghar.

Investigation in the case revealed that M/s. Shree Balaji Steel had fraudulently claimed ITC of Rs. 6.23 Crore from various fictitious entities and passed it on to different buyers. Proprietor and manager of the firm were arrested on yesterday, 12th December 2021 under Section 69 of CGST Act. They were produced before the Additional CMM court, Fort, Mumbai. The Hon'ble Court has remanded both the accused to 14 days' judicial custody. The quantum of duty evasion is likely to go up during the ongoing investigation.

Detection of Tax Evasion Cases Increased Substantially

This case is part of the special drive initiated by CGST Mumbai Zone in September 2021. The special drive which was initiated to check tax evasion and enhance revenue mop-up relies on intensive data mining and data analytics. Special IT tools are used to do spot profiling of tax evaders after examining their track records in return filling and other credentials. The drive has resulted in detection of tax evasion of Rs. 3500 Crore, out of which Rs. 460 Crore have been recovered and 30 persons have been arrested.

The CGST Mumbai zone will further intensify this drive against tax evaders to support the honest and compliant tax payers and to maximise the GST revenue collection in the service of the nation.