CGST Commissionerate, Navi Mumbai has busted a fake ITC racket of Rs. 19.84 Crore and arrested the Director of M/s Fortune Global Trade Private Limited on 30th March 2022. This Vikhroli based private limited company, which was dealing in trade of synthetic rubber, had engaged in availing and utilization of fake GST Input Tax Credit (ITC) on the basis of bogus invoices of Rs. 110 Crore.
Acting on a tip off received from Central Intelligence Unit of Principal Chief Commissioner CGST Mumbai Zone, a team of officers of Anti-Evasion section of CGST Commissionerate, Navi Mumbai had conducted an enquiry against the aforesaid company. The said company had availed fake ITC of Rs. 9.92 Crore from 8 non existing entities and had passed on the same to various entities, without actual supply of goods or services.
The accused was arrested under Section 69 of the Central Goods and Services Act, 2017 for committal of offences under Section 132 (1) (b) & (c) of the said Act and was produced before the First class Judicial Magistrate, Vashi on 31.03.2022. The magistrate has sent the accused to judicial custody for 14 days till 13.04.2022.
This case is a part of Anti-Evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders by issuing fake invoices and 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 Rs 500 Crore, recovered Rs. 20 crores and arrested 14 persons in the financial year 2021-22.
In another case, CGST Commissionerate Thane Rural arrested a GST practitioner for indulging in fake ITC fraud of Rs. 176 Crore by a Thane based firm M/s Motec Traders. The accused was arrested and produced before the magistrate on 30.03.2022. The magistrate has sent the accused to 14 days judicial custody. This is the third arrest in this case.
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 1170 tax evasion cases, detected tax evasion of Rs. 7400 Crore, recovered Rs. 875 Crore and arrested 67 persons, in the last seven months. The CGST department is going to intensify the drive against the fraudsters and tax evaders which are causing unfair competition with honest taxpayers and defrauding the government exchequer of its rightful revenue in the coming financial year too.