CGST Bhiwandi Commissionerate arrests Rs. 132cr Fake Invoice racket mastermind

Officers of CGST Bhiwandi Commissionerate in Mumbai Zone have busted a fake invoice racket involving issuance of invoices amounting to Rs132cr and availing/passing on Input Tax credit of Rs23cr. Officers of CGST Bhiwandi Commissionerate arrested one person on 9.09.22 who has been sent to judicial custody till 23.09.22.

Anti-evasion wing of CGST Bhiwandi Commsissionerate was investigating various fake firms namely M/s Mectech Steel Trading Private Limited M/s UGSK Trader, M/s World Enterprises , M/s Rolex Enterprises and M/s HHT Enterprises and M/s Yesh Enterprises wherein various direct and indirect links were established between these firms and the accused. 

Based on specific intelligence, anti-evasion wing of CGST Bhiwandi Commissionerate conducted search operation at residential premises of accused who was wanted in 8 of the ongoing investigation cases for his alleged role in GST fraud. 

A probe revealed that the accused allegedly created a web of these fake firms, through which they generated fake invoices of Rs132cr and availed/passed on fake ITC of Rs23.16 crore without supplying any goods and services.

Further the accused confessed that he has floated 36 fake GST firms and established a network to pass-on fake Input Tax Credit which is spread across various GST Commissionerate. 

Based on material evidence gathered during the investigation, the aforesaid accused mastermind was arrested on 09.09.22 under section 69 of the CGST Act, 2017 for contravention of section 132 of the CGST Act, 2017.

This is a part of special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. This is the 17th arrest by CGST Bhiwandi Commissionerate in last one year.

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