CGST Mumbai Central Commissionerate busts a racket of fake ITC generators

The officers of CGST Mumbai Central Commissionerate have smashed a racket of fake Input Tax Credit (ITC) generators, who had been passing this fake ITC to the tune of Rs. 35 crores to various entities. The officers have arrested the kingpin for generating and passing on this fake credit to more than 15 entities in and around Mumbai. The arrested person was receiving the fake ITC and passing it in the downward supply chain without actual receipt or supply of goods. He was arrested under section 69 of the CGST Act and produced before the Chief Judicial Magistrate on Tuesday (December 7, 2021). He has been remanded him to the judicial custody for 14 days.

This case of arrest is one amongst a series of cases detected by the CGST Mumbai zone in the last three months, by launching a special campaign against those who are generating fictitious entities for availing and passing on fake ITC. The officers of Mumbai zone have unearthed more than 50 networks of tax evaders, detected tax evasion amounting to Rs. 3000 crores, recovered tax of Rs. 400 crores and arrested 24 persons in last three months.

To support the honest taxpayers, it has been an endeavour of the CGST department to cleanse out the fake entities and tax evaders who are generating and utilizing the fake ITC without actual receipt or supply of goods. In order to increase the revenue mop-up, CGST department shall carry on this special drive by doing intensive data mining and data analytics along with collection of specific intelligence from different sources.