Navi Mumbai: Man arrested by CGST in Rs 26 cr ITC fraud case

The Central Goods & Services Tax (CGST) officials have busted a fake Input Tax Credit (ITC) network and arrested the proprietor of M/s Amarnath Enterprises, Navi Mumbai for allegedly availing and passing on of fake ITC of Rs 26.28 crore by issuing bogus invoices to the tune of Rs 132.7 crores, agency officials informed on Friday.

According to the CGST officials, based on a tip-off received from the Central Intelligence Unit of CGST Mumbai Zone an investigation was initiated, which revealed that only invoices were issued and no supply of goods had taken place. Evidence gathered during the investigation and confession of the proprietor indicated that an offence was being committed with full disregard to the statutory provisions, with an intention to defraud the Government of its due revenue.

"Thus the accused proprietor was arrested on Thursday and was produced before the court which remanded him to judicial custody for 14 days," said an official.

The agency officials stated that this case is a part of a special Anti-Evasion drive launched by CGST, Mumbai Zone against the fraudsters and tax evaders who are creating unhealthy competition for compliant taxpayers and defrauding the Government exchequer.

Belapur Commissionerate has detected tax evasion of Rs 1138.59 crore and arrested 4 persons, in the financial year 2021-22. The CGST department is using data analytics and network analysis tools to identify fake ITC networks and other tax evaders.