Arrests proprietor for GST fraud to the tune of Rs 26 crores

CGST Commissionerate, Belapur arrests proprietor for GST fraud to the tune of Rs 26 crores

The CGST Commissionerate, Belapur under CGST Mumbai Zone has busted a fake ITC network and arrested the proprietor of  M/s. Amarnath Enterprises, Navi Mumbai for availing and passing on of fake Input Tax Credit (ITC) of Rs 26.28 Crore by issuing bogus invoices to the tune of Rs 132.7 Crores.

Based on a tip off received from Central Intelligence Unit of CGST Mumbai Zone an investigation was initiated, which revealed that only invoices were issued and no supply of goods had taken place. Evidence gathered during the investigation and confession of the proprietor indicated that an offence, as specified in Section 132 of the Central Goods and Services Tax Act, 2017, was being committed with full disregard to the statutory provisions, with an intention to defraud the Government of its due revenue. Thus he was arrested under Section 69 of the CGST Act on 24.02.2022 and produced before the court on the same day, who has remanded him to judicial custody for 14 days.

This case is a part of special Anti-Evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders who are creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer. Belapur Commissionerate has detected tax evasion of Rs. 1138.59 Crore and arrested 4 persons, in the financial year 2021-22. The CGST department is using data analytics and network analysis tools to identify fake ITC networks and other tax evaders. Department is going to intensify its drive against the fraudsters and tax evaders in the coming days and months.

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SC/ Source: Anti-Evasion, CGST & C.Ex, Belapur.