CGST Navi Mumbai busts Rs21-cr fake ITC racket

Mumbai: CGST Commissionerate, Navi Mumbai has busted a fake ITC racket of about Rs 21 crore and arrested the proprietor of Shree Ram Enterprise on Thursday. The firm was engaged in availing, utilizing and passing on a fraudulent Input Tax Credit (ITC) on the bogus invoices of around Rs 100 crore thereby defrauding the government exchequer.

A team of officers of Anti-Evasion, CGST, Navi Mumbai conducted enquiry against the aforesaid 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 under Section 69 (1) of the Central Goods and Services Act, 2017 for committal of offences under Section 132 (1) (b) and (c) of the said Act and was produced before the Judicial Magistrate First class, Vashi at Belapur on February 16th, 2022 and has been sent on judicial custody for 14 days.