CGST Bhiwandi Commissionerate in Mumbai Zone have busted two separate fake GST invoice rackets

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CGST Bhiwandi Commissionerate in Mumbai Zone have busted two separate fake GST invoice rackets

Officers of CGST Bhiwandi Commissionerate in Mumbai Zone have busted two separate fake GST invoice rackets, which was used to avail and pass on fake Input Tax Credit (ITC) of around Rs. 23 crore on bogus invoices of Rs 55 crore.

Two persons, proprietors of M/s M. M. Buildcon / Lambodar Buildcon and M/s. Vishwakarma Enterprises, have been arrested on 18.08.22 under CGST Act. Acting on a specific input, the anti-evasion wing of CGST Bhiwandi Commissionerate initiated an investigation against these firms.

 During the investigation both the firms found to be non-existing/ fake. In the statements, the proprietors admitted to the fraud and tax evasion. Further, Input Tax Credit (ITC) to the tune of Rs. 23 crore is availed and passed on the basis of fake invoices issued by non- existent/ fake/nongenuine firms/dummy firms. Based on material evidence gathered during the investigation, the proprietors of both firms were arrested on 18.08.2022 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017.

This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. These are 15th and  16th arrest by CGST Bhiwandi Commissionerate in last one year.

 CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. CGST officers will intensify this drive against tax evaders in the coming days.

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