M/s Maico Enterprises of Jalna raided by CGST
Chhatrapati Sambhajinagar: A massive scam involving Rs 9.19 crore has been unearthed in Jalna. The scam involves the creation of fake GST bills and availing Input Tax Credit (ITC) without making any actual transactions.
The mastermind behind the scam, the owner of M/s Maico Enterprises, has been arrested by the Central Goods and Services Tax (CGST) commissionerate's preventive branch team.
According to investigators, a fictitious firm named M/s Maico Enterprises was registered under GST for trading in various types of goods such as cement, steel bars and scrap. Through this firm, the owner had received fake bills worth Rs 42.71 crore. Bills for Rs 9.19 crores were then filed through ITC.
During interrogation, the accused admitted that the firm was fake and the transactions were only on paper. No actual goods were traded.
The owner of M/s Maico Enterprises has been arrested and further investigation is underway.
Scam extends to Mumbai
According to officials, the scam has been going on for four years and its network extends to Mumbai and other states. A thorough investigation by the CGST department will expose many such fake companies. The scam has exposed the disadvantages of the ITC system, which is meant to give manufacturers credit for taxes paid on inputs. However, in this case, the ITC was exploited by creating fake invoices.