CGST Ccommissionerate, Mumbai West Zone busts fake GST Input Tax Credit of Rs. 15.23 Crore

Central Goods and Services Tax (CGST)  Commissionerate, Mumbai West Zone has busted a fake GST Input Tax Credit (ITC) racket and arrested the proprietor of a Malad based firm. The firm was involved in fraudulent availment and passing of Input Tax Credit (ITC) of Rs 15.23 Crore without receiving or supply of goods, in violation of the provisions of CGST Act, 2017.

Acting on a tip off received from Central Intelligence Unit of CGST Mumbai Zone, an investigation was initiated against M/s Pacific Pharma, which deals in trading of Chemicals. CGST Mumbai Zone has found that bogus bills of around Rs. 105 Crore were issued for this tax fraud.

The owner of the firm was arrested under Section 69 of CGST Act, 2017 for contravention of Section 132 of CGST Act, 2017 and produced before the Additional Chief Metropolitan Magistrate, Esplanade on 28th April 2022. The Magistrate has remanded him to 14 days judicial custody. Further investigation is under progress.

This operation is a part of efforts by CGST Mumbai Zone to stamp out fake ITC networks and tax evaders, which have been causing unhealthy competition with honest taxpayers and defrauding the Government Exchequer. As a part of these efforts, in the last six months, CGST, Mumbai West Commissionerate has unearthed fake ITC amounting to Rs.465.75 Crore, recovered Rs. 35.57 Crore and arrested five persons.

The CGST officers are using data analysis and network analysis tools to identify potential fraudsters. Department is going to intensify the drive against tax evaders in this financial year.