Maharashtra: CGST Commissionerate Raigad busts Rs 12 cr fake Input Tax Credit racket

CGST (Central Goods and Services Tax) Commissionerate, Raigad busted a fake ITC racket and arrests the proprietor of a Kalamboli-based firm Ashok Metal Scrap for being engaged in availing and passing on fake GST Input Tax Credit (ITC) of Rs 12 crore by using bogus invoices of more than Rs 64 crore.

The agency stated, "Based on a tip-off from Central Intelligence Unit (CIU) of CGST Mumbai zone, a team from Anti-Evasion Wing of CGST Commissionerate Raigad initiated an investigation, which revealed that this firm had availed fake ITC on the basis of bogus invoices issued by more than 20 non-existing firms and passed this fake ITC to other firms."

The proprietor of the firm evaded the investigation proceedings and was absconding since October 2021.

The accused was arrested on Thursday under Section 69 of the Central Goods and Services Act, 2017 for the committal of offences under Section 132 of the said Act and was produced before the Judicial Magistrate First class in Panvel. He has been sent to judicial custody for 14 days.

According to the agency, this case is a part of a special 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. Raigad Commissionerate has detected tax evasion of Rs 675 crore and recovered Rs 403 crore. They have arrested 8 persons, in the financial year 2021-22.

( With inputs from ANI )

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