Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket, which was used to pass on fake GST Input Tax Credit (ITC) of Rs. 27.80 crore on invoices of Rs 142 Crore, and have arrested the Director of M/s Techno Satcomm India Pvt. Ltd. for issuing GST invoices without actual supply of goods.

Acting on a specific input received from the Central Intelligence Unit of CGST Mumbai Zone, the anti-evasion wing of CGST Mumbai South Commissionerate initiated an investigation against this company. During the investigation, the company was found to be non-existent at the declared business address. Subsequently, the statement of its Director was recorded on September 05, 2022 wherein he admitted his role in the generation of fake ITC and passing on this ITC in the downward supply chain.

Investigation revealed that this company had fraudulently claimed input tax credit of Rs. 27.80 Crore in its GST returns and passed on this ITC to its various recipients. Bogus invoices of around Rs. 142 Crore were issued for passing on this tax credit, without any supply of goods, in gross violation of provisions of the CGST Act, 2017.

Based on material evidence gathered during the investigation, the Director of the company was arrested on September 06, 2022 and produced before the Hon’ble Additional Chief Metropolitan Magistrate, Esplanade on the same day who has remanded him to judicial custody for 14 days. Further investigation is under progress.

This is the seventh arrest by the officers of CGST Mumbai South Commissionerate, in the current financial year. During the financial year 2021-22, the CGST Mumbai South Commissionerate had detected GST evasion of Rs. 949 Crore, recovered Rs. 18 Crore and arrested 9 tax evaders

CGST officers are using data analysis and network analysis tools to identify and trace potential fraudsters. This case is a part of the special drive launched by the CGST Mumbai Zone against tax fraudsters and fake ITC networks. The CGST officers will intensify this drive against the tax evaders in the coming days.

The National Anti-Profiteering Authority (NAA) has ordered Tata Play Ltd. to deposit ₹450 crores with interest in designated consumer welfare funds for allegedly profiteering after the introduction of Goods and Services Tax (GST), showed an official order. 

NAA said in an order posted on its website that the period of alleged profiteering from subscribers was from 1 July 2017 to 31 January 2019. The decision came on the basis of an application filed by a consumer based in Karnataka which led to an investigation by the Director General of Anti-Profiteering (DGAP). 

The investigation looked into allegation that in the direct to home service by the company, commensurate benefit of input tax credit that became available to the company after GST rollout, was not passed on to the consumer as mandated under the Central GST Act. 

The company informed NAA that post February 2019, the Telecom Regulatory Authority of India orders have specified the pricing regulations based on network carriage fees and channel package price which were being followed by them. The order quoted Tata Play’s submission that there is no impact of taxes on its package pricing to the consumer.  

The order said that half of the amount of alleged amount of profiteering has to be deposited in central consumer welfare fund and the rest in state consumer welfare funds.

The petition was filed challenging the validity of the amendment to sub-rule 2 of Rule 21A of the Central GST Rules 2017 which deprives the assessee of the opportunity to be heard before suspending the GST registration.

The Bombay High Court recently issued notice to the Attorney General for India and Advocate General of Maharashtra in a petition challenging the amendment to the Goods and Services Tax Rules of 2017 (GST Rules) which deprives the assessee of the opportunity to be heard before suspending the GST registration [SAT Industries Ltd. v. Union of India & Ors.]