Mumbai: Director of pvt firm held by CGST in Rs 27.59 cr ITC fraud

Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket, which was used to allegedly avail and pass on fake GST Input Tax Credit (ITC) of around Rs 27.59 crore, on bogus invoices of Rs 455 crores, and have arrested the director of M/s Ammy International Journal (OPC) Private Limited.

Acting on a specific input received from Central Intelligence Unit, CGST Mumbai Zone, the anti-evasion wing of CGST Mumbai South Commissionerate had initiated an investigation. During investigation, it was found that the taxpayer 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 August 10 and his statement was recorded wherein he admitted his role in this tax fraud.

Investigation revealed that this company had fraudulently claimed input tax credit 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.

Based on material evidence gathered during the investigation and admission of his role in this tax fraud, the accused person was arrested on August 10. He was produced before the Additional Chief Metropolitan Magistrate, Esplanade. The Magistrate has remanded him to judicial custody for 14 days.