CGST Mumbai South Commissionerate busts Rs. 142 Crore fake GST invoice racket

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.

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