Racket involving bogus bills of Rs 234 crore busted in Mumbai

New Delhi, Jan 26: The officers of Mumbai Central CGST Commissionerate of Mumbai Zone have busted a fake GST Input Tax Credit (ITC) racket involving bogus bills of Rs.234 Crores and fake ITC of Rs. 41 Crores and arrested a businessman engaged in metal trading, the Ministry of Finance said in a note.

Acting on intelligence received from Central Intelligence Unit, Mumbai CGST Zone, the officers initiated investigation against two Masjid Bunder based entities namely M/s. Jai Vinayak Impex Private Limited and M/s Jai Vinayak Metal Corporation. Searches were conducted at business premises and residence of their proprietor and director. The businessman, who is proprietor in one of the firms and director in another, was found involved in receiving fake ITC from 40 entities and was passing on this ITC to various entities, without actual supply or receipt of goods.

Based on material evidence collected during investigation and confession of the businessman, he was arrested on 25.01.2022 under Section 69 of CGST Act and produced before the Hon'ble CMM Court, Mumbai. Accused was remanded to 14 days judicial custody. Further investigation is under progress.

This operation is a part of special anti-tax evasion drive initiated by the CGST Mumbai Zone to eradicate fake ITC networks and to curb GST tax evasion. During this drive, Mumbai Central Commissionerate has recovered Rs. 30 crores and arrested 12 persons.