CGST Mumbai busts fraudulent ITC availment of Rs 15 cr

Mumbai, May 13 Central Goods and Services Tax (CGST) Commissionerate of Mumbai Zone have busted a fake GST Input Tax Credit (ITC) racket and arrested the proprietor of a Darukhana (Mumbai) based firm. Analysis of GST data indicated that the firm was indulging in GST evasion.

Investigation revealed that Aashiq Steel Industries, which deals in trading of steel and other metal products, was involved in fraudulent availment and passing of Input Tax Credit (ITC) of Rs 15 Crore without receiving or supply of goods, in gross violation of the provisions of CGST Act, 2017. Bogus bills of around Rs 83 crore were issued for this tax fraud.

The owner was arrested under Section 69 of CGST Act, 2017 for contravention of Section 132 of CGST Act, 2017 and produced before Chief Metropolitan Magistrate on May 11. The court has remanded him to 14 days judicial custody. Further investigation is under progress.

This operation is a part of efforts by CGST Mumbai Zone to stamp out fake ITC networks and tax evaders, which have been causing unhealthy competition with honest taxpayers and defrauding the Government Exchequer. As a part of these efforts, in the last financial year, CGST Mumbai Central Commissionerate has unearthed fake ITC amounting to Rs 600 crore, recovered Rs 150 crore and arrested 11 tax evaders.

CGST officers are using data analysis and network analysis tools to identify potential fraudsters. Department is going to intensify the drive against tax evaders in this financial year.