CGST Bhiwandi arrests 1 for availing fake input tax credit through bogus invoices

Mumbai (Maharashtra) [India], August 19 : Officials of the Central Goods and Service Tax (CGST) Bhiwandi Commissionerate in Mumbai Zone have busted a fake GST invoice racket, which they said was used to avail and pass on fake input tax credit (ITC) worth around Rs18 crore through bogus invoices of Rs 41 crore.
The proprietor of MM Buildcon / Lambodar Buildcon, has been arrested on Thursday under CGST Act, a statement said.
Acting on a specific input, the anti-evasion wing of CGST Bhiwandi Commissionerate initiated an investigation against the firm. During the investigation MM Buildcon / Lambodar Buildcon, GSTIN: 27ANLPS2183E1ZR was found to be a non-existing/ fake firm.
The proprietor stated that he vacated the said registered premises/godown, in 2018.
"Except for the said premises, the firm does not have any other registered premises under GST. Even after vacating the said PPoB premises, M/s. M M Buildcon/ Lambodar Buildcon kept continued using the same address in their all transactions i.e. sales and purchases," the statement added.
This case is a part of the special drive launched by the CGST Mumbai Zone against tax fraudsters and fake ITC networks. This is the 16th arrest by CGST Bhiwandi Commissionerate in the last one year.
CGST officers are using data analysis and network analysis tools to identify and trace potential fraudsters. CGST officers will intensify this drive against tax evaders in the coming days, the statement added.