Navi Mumbai: CGST arrests proprietor of M/s Shree Ram Enterprise in fake Input Tax Credit racket of Rs 21 crores

The Central Goods & Services Tax (CGST) Navi Mumbai has busted a fake Input Tax Credit (ITC) racket of about Rs 21 crores and have arrested the proprietor of M/s Shree Ram Enterprise in connection with the case on Wednesday. The firm was allegedly engaged in availing, utilizing and passing on a fraudulent ITC on the bogus invoices of around Rs 100 crores thereby defrauding the government exchequer.

According to the CGST officials, a team of officers of Anti-Evasion department of CGST had conducted enquiry against the said firm. "As per the statement of the proprietor, the said firm is involved in trade of scrap of ferrous and other metals. However, the investigation revealed that the taxpayer has availed and passed on fraudulent ITC from various non-existing/bogus firms. The accused has been arrested and was produced before the court at Belapur on Wednesday and has been sent to judicial custody for 14 days," said an official.

He added, "This case is a part of Anti-Evasion drive launched by CGST against the fraudsters and tax evaders who are creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer. As a part of this drive, Navi Mumbai Commissionerate has detected tax evasion of about Rs 500 crore, recovered Rs 20 crores and arrested 13 persons recently.

The CGST Department is using data analysis tools to identify tax evaders. By using data analysis and network analysis, the officers of CGST Mumbai zone have booked more than 625 tax evasion cases, detected tax evasion of Rs. 5500 Crore, recovered Rs. 630 Crore and arrested more than 50 persons, in the last five months.