In Mumbai Busts fake Input Tax Credit racket of about Rs. 21 crores

CGST Commissionerate, Navi Mumbai has busted a fake ITC racket of about Rs. 21 crores and arrested the proprietor of M/s. Shree Ram Enterprise (GSTIN: 27FPAPS4153A1Z3) today. The firm was engaged in availing,utilizing and passing on a fraudulent Input Tax Credit (ITC) on the bogus invoices of around Rs. 100 Crores thereby defrauding the government exchequer.

A team of officers of Anti-Evasion, CGST, Navi Mumbai conducted enquiry against the aforesaid firm. As per the statement of the proprietor, the said firm is involved in trade of scrap of ferrous and other metals. However, the investigation revealed that the taxpayer has availed and passed on fraudulent ITC from various non-existing/bogus firms.  The accused has been arrested under Section 69 (1) of the Central Goods and Services Act, 2017 for committal of offences under Section 132 (1) (b) and (c) of the said Act and was produced before the Judicial Magistrate First class, Vashi at Belapur on 16.02.2022 and has been sent on judicial custody for 14 days.

This case is a part of 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. As a part of this drive, Navi Mumbai Commissionerate has detected tax evasion of about Rs 500 Crore, recovered Rs. 20 crores and arrested 13 persons recently.

The CGST Department is using data analysis tools to identify tax evaders. By using data analysis and network analysis, the officers of CGST Mumbai zone have booked more than 625 tax evasion cases, detected tax evasion of Rs. 5500 Crore, recovered Rs. 630 Crore and arrested more than 50 persons, in the last five months.

The CGST department is going to intensify the drive against the fraudsters and tax evaders, who are causing conditions of unfair competition with honest taxpayers and defrauding the government exchequer of its rightful revenue.