• Notification Date: 26-02-2022
• Notification No: N/A

Racket availing Fake ITC Benefits Arrested

The Central Goods and Services Tax (CGST) Commissionerate of the Mumbai zone stated that the officials have arrested a racket that has been availing fake input tax credits (ITC) for a long time.

The CGST Commissionerate of Belapur of the CGST Mumbai zone stated that the officers have arrested the proprietor of the Amarnath Enterprises, Navi Mumbai. The offender has been arrested on the accusation of availing and passing on of fake Input Tax Credit (ITC) worth Rs.26.28 crores. According to the pieces of evidence and proof, he has been issuing fake invoices worth Rs.132.7 crores.

The CGST Commissionerate has reported that the investigation began on the basis of information received from the Central Intelligence Unit of CGST Mumbai Zone. The information led to the investigation which revealed that the invoices were being issued without any goods or services being provided.

According to the information and evidence gathered from the investigation, as well as the confession of the proprietor, he has been committing illegal activities under Section 132 of the Central Goods and Services Tax (CGST) Act, 2017. The offender has been disregarding all the statutory provisions. He has been carrying out illicit activities intending to defraud the Government of its due revenue.

The proprietor of Amarnath Enterprises has been arrested by the CGST officials on 22 February 2022. He has been produced before the court on that very day. The court has ordered 14 days of judicial custody for the offender.

This case is included as a part of the special Anti-Evasion drive launched by the Central Goods and Services Tax (CGST), Mumbai Zone. It is a part of the cases that deal against fraudsters and tax evaders. These law offenders are creating unhealthy competition for compliant taxpayers. These tax evaders are defrauding the Government exchequer.

The investigation conducted by the Belapur Commissionerate has revealed a tax evasion of Rs.1138.59 crores. The officials have arrested 4 people in the financial year 2021-22 till now.

The CGST department is utilizing innovative technologies like data analytics and network analysis tools to identify the fraud ITC networks and other tax evader rackets.