Case involves fake invoice of more than Rs. 500 crores
The officers of CGST, Thane (Rural) Commissionerate have arrested a Chartered Accountant who had generated fake input tax credit to the tune of Rs. 92 crores involving fake invoice of more than Rs. 500 crores without actual receipt of goods. The investigation has revealed that the fraudulent had used the identity of a housewife to create a firm namely M/s. Shraddha Electrical located at Ambernath (Thane).
Investigation has also revealed that a group of persons including arrested Chartered Accountant were engaged in a racket of generation of fake ITC and had passed on the same downstream without any movement of goods. After detailed interrogation and admission by the Chartered Accountant that he had generated fake ITC and passed on the same without any movement of goods and had violated the provisions of Section 132 of CGST Act, the officers arrested him under Section 69 of the CGST Act in the afternoon of 14th December, 2021. He was produced before the Additional Chief Metropolitan Magistrate, Mumbai. The Hon’ble court has remanded him to judicial custody for 14 days. Further investigation is in progress.
This case of detection of fake ITC is a part of special Anti-Evasion drive launched by CGST, Mumbai Zone which involve intensive data mining and data analytics using various IT tools. The motive behind this drive is to help the honest and compliant taxpayers, to kill the unfair competition generated by the fake ITC, and thus help the honest and compliant taxpayers with the intent to mop up maximum revenue in the service of nation.