Mumbai Commissionerate busts INR 263 Cr fake GST invoice racket; 1 Arrested

Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket of Invoice value of INR 263 Crores involving fake GST Input Tax Credit (ITC) of INR 7.66 Crores and have arrested the proprietor of M/s Shree Balaji Gold. 

Acting on a specific input received from Central Intelligence Unit headed by Principal Chief Commissioner, CGST, Mumbai Zone, the anti-evasion wing of CGST Mumbai South Commissionerate had initiated an investigation. On the basis of CIU intelligence and further intelligence developed, investigation was initiated against M/s. Shree Balaji Gold in connection of availing and passing on of fake ITC by issuing invoices without actual supply of goods.

During the course of search conducted at registered premises of M/s. Shree Balaji Gold, it was found that no legitimate business operations were executed from the principal place of business of the said entity. 

The proprietor of the firm joined the investigation on October 19, 2023 and his statement was recorded wherein he admitted his role in this tax fraud. Investigation revealed that this firm had fraudulently availed input tax credit on the bogus invoices of INR 263 Crores involving ITC of INR 7.66 Cr. without supply of goods. The bogus invoices were received for availing inadmissible input tax credit, in a fraudulent manner without actual receipt of goods, in gross violation of provisions of the CGST Act, 2017.

Based on material evidence gathered during the investigation and admission of his role in this tax fraud, the accused person was arrested on October 20, 2023 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017. He was produced before the Hon’ble Additional Chief Metropolitan Magistrate, Esplanade. The Magistrate has remanded him to judicial custody for 14 days.

CGST officers are using data analysis and network analysis tools to identify and trace the potential fraudsters. This case is a part of the special drive launched by the CGST Mumbai Zone against the tax fraudsters and fake ITC networks. The CGST officers will intensify this drive against the tax evaders in the coming days.