Maharashtra: CGST Cracks Down On 70 Shell Companies In Palghar, Busting ₹48.08 Crore Bogus ITC Claims Racket

Mumbai: The Central Goods and Services Tax (CGST) has started crackdown on alleged shell companies with second round of all India drive against fake GST registrations with another bogus input tax credit (ITC) claims racket involving 70 shell companies busted in Palghar on Friday.

Earlier on Thursday bogus ITC claims racket of Rs 44 crore was busted by the CGST anti evasion unit and the mastermind operating 22 shell companies was arrested in Borivali.

The GST authorities using advanced analytical tools had got leads on 70 shell companies while investigating an earlier case of bogus ITC claim of Rs 59 crore in which three accused were arrested.

The anti evasion unit of CGST busted fake invoicing racket during a search operation on M/s Mad’s Packaging operating 70 dubious firms across Mumbai and Pune claiming bogus ITC of Rs. 48.08 crore with invoice value of Rs 320 crore.

The fake firms availed fraudulent ITC of approx Rs 22.28 crore and passed on fraudulent ITC of Rs 25.80 crore totaling Rs. 48.08 crore with invoice value to the tune of Rs 320 crore. “The mastermind created 70 shell companies to issue fake invoices to avail and pass on ineligible ITC without actual supply of goods and services among themselves and to other companies too, based on commission basis,” disclosed a senior GST official.

The GST anti evasion sleuths seized incriminating evidences including diaries and bogus invoices during search operations.