Maharashtra Fraud: Raigad CGST Officials Bust ₹9 Crore Fake Input Tax Credit Racket; 2 Arrested In Panvel And Dombivli

Mumbai: A team of officers of Anti-Evasion, CGST & Central Excise Raigad Commissionerate, Mumbai Zone have arrested two persons involved in generating and passing on fake input tax credit (ITC) of more than Rs 9 crore by creating fictitious firms and issuing invoices without actual supply of goods/services.

Fake ITC Passed Using Fictitious Firms, Say Raigad CGST Officials

Acting upon intelligence, the team identified the fake firms being operated by the accused to avail and pass on fake ITC. The accused firm availed ineligible credit passed on by non-existent firms registered based on forged documents.

No Actual Goods Supplied, Yet Invoices Issued

The accused firm was found non-operational at the registered principal place of business evidencing no goods received or supplied. Thus, the firm had fraudulently availed/ passed on ITC in violation of CGST Act, 2017.

Panvel and Dombivli Residents Nabbed for Tax Evasion

The investigation revealed that the Directors of the firm, a resident of New Panvel and a resident of Dombivli (W) were actively involved in the fraud of government revenue.

Two Arrested for ₹9 Crore GST Fraud in Maharashtra

Both were arrested under section 69(1) of CGST Act, 2017 for offences punishable under Section 132(1)(b)/132(1)(c) of CGST Act, 2017 and produced before the Judicial Magistrate First Class, Panvel. The Court has sent them to judicial custody.

Further investigation is in progress to identify other beneficiaries and operators of this fake invoice racket.