CGST Mumbai (South) Commissionerate busts Rs. 455 Crore fake GST invoice racket – One person Arrested

In a press statement issued by the office the Principal Commissioner of CGST and CX, Mumbai (South) has informed that – Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket, which was used to avail & pass on fake GST Input Tax Credit (ITC) of around Rs. 27.59 crore, on bogus invoices of Rs 455 Crores, and have arrested the director of M/s Ammy International Journal (OPC) Private Limited.

Acting on a specific input received from Central Intelligence Unit, CGST Mumbai Zone, the anti-evasion wing of CGST Mumbai South Commissionerate had initiated an investigation. During investigation, it was found that the taxpayer was non-functional at the registered place of business. The director of the company did not join the investigation and was absconding since last few months. However, he joined the investigation on 10.08.2022 and his statement was recorded wherein he admitted his role in this tax fraud.

Investigation revealed that this company had fraudulently claimed input tax credit of Rs. 14.15 Crore and passed on fake input tax credit of Rs. 13.44 Crore to various non-existent entities. Bogus invoices of Rs. 455 Crore were issued for availing and passing on of inadmissible input tax credit, in a fraudulent manner without actual supply or receipt of goods, in gross violation of provisions of the CGST Act, 2017.

Based on material evidence gathered during the investigation and admission of his role in this tax fraud, the accused person was arrested on 10.08.2022 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. The Magistrate has remanded him to judicial custody for 14 days.

During the financial year 2021-22, the CGST Mumbai South Commissionerate had detected GST evasion of Rs. 949 Crore, recovered Rs. 18 Crore and arrested 9 tax evaders. This is the sixth arrest by the officers of CGST Mumbai South Commissionerate, in the current financial year.

CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. The CGST officers will intensify this drive against the tax evaders in the coming days.