CGST Bhiwandi Commissionerate arrests a businessman involved in passing of fake ITC and bogus billing

A businessman involved in Fake Input Tax Credit racket has been arrested by the officers of Bhiwandi Commissionerate of CGST Mumbai Zone. Intelligence was developed by anti-evasion, Bhiwandi CGST of Mumbai CGST Zone, using different data analytics tools such as Advait, E-way Bill Portal etc. During investigation, it was found that the businessman opened two firms in his name, through which he has availed and utilized total ITC of Rs 20.44 Cr. Preliminary investigation done till date has revealed GST evasion of Rs 5.74 Crores by wrong availment of fake ITC without receipt of goods of total value of Rs 32.5 Crores.

Fake ITC & bogus billing CGST Bhiwandi Commissionerate arrests a businessman

The search was conducted at residential premises of tax-payer who was indulging in bogus billing and availment and passing on of fake ITC and thus defrauding the Government exchequer of its rightful GST revenue. The initial investigation revealed that the firm had fraudulently availed Input Tax Credit (ITC) of Rs. 5.74 Crores without actual receipt of goods from non- existent/non-genuine suppliers. He is the proprietor of the two firms M/s N. S. Pharma Chem and M/s Neon Pharma Chem. The tax-payer has not produced any documents on which the ITC is claimed and passed on. He was arrested on 09.03.2022 under Section 69 of CGST Act, 2017 and was produced before the Hon’ble Additional Chief Metropolitan Magistrate, Fort, Mumbai, today. The accused has been remanded to 14 days of judicial custody, till 22.03.2022.

This operation is a part of efforts by CGST Mumbai Zone to eradicate fake ITC networks, which have been vitiating the healthy economic ecosystem of the country and defrauding the Government Exchequer. This is the seventh arrest by Bhiwandi Commissionerate in last six months. The department will intensify the drive against fake ITC networks and other GST evaders in the coming months.

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February 2024