Officers of the Central Goods and Services Tax (CGST) Commissionerate, South Mumbai, have busted a fake GST invoice racket which was used to avail and pass on fake GST Input Tax Credit (ITC) of around Rs. 27.59 crore, on bogus invoices of Rs 455 crore, an official press release stated on Thursday evening.
The officials have have arrested the director of M/s Ammy International Journal (OPC) Private Limited in connection with the racket.
According to the release, the tax sleuths from the anti-evasion wing received actionable intelligence in this regard and, during the course of their investigation, found that the company was non-functional at the registered place of business.
"The director of the company did not join the investigation and was absconding since last few months. However, he joined the investigation on 10.08.2022 and his statement was recorded wherein he admitted his role in this tax fraud," the release stated.
The Investigation revealed that this company had fraudulently claimed ITC of Rs. 14.15 crore and passed on fake input tax credit of Rs. 13.44 crore to various non-existent entities. "Bogus invoices of Rs 455 crore were issued for availing and passing on of inadmissible input tax credit, in a fraudulent manner without actual supply or receipt of goods, in gross violation of provisions of the CGST Act, 2017," the release added.
The arrested person has been charged under Section 69 of CGST Act, 2017, for contravention of Section 132 of Act. He was produced before the Chief Metropolitan Magistrate, Esplanade, and was remanded in judicial custody for 14 days.
According to the release, CGST officers use data analysis and network analysis tools to identify and trace the potential fraudsters. "This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. The CGST officers will intensify this drive against the tax evaders in the coming days," the release added.
First Published: Aug 11, 2022 10:46 PM IST
