Officers of CGST Belapur Commissionerate of Mumbai Zone have busted a fake GST invoice racket, which was used to avail fake GST Input Tax Credit (ITC) of around INR 147 crore, on bogus invoices of INR 817 Crores and have arrested the de facto director/ Mastermind of M/s Dhruvika Chemicals Trading Pvt. Ltd., M/s Nicolasa Trading Pvt. Ltd., M/s J B Dyechem Pvt. Ltd etc.
An investigation was initiated against the above group that they have indulged in receipt and issuance of only invoices without actual purchase and sale / supply of the goods, thereby availing and passing on ineligible GST Input Tax Credit, within the fictitious companies created for the purpose of inflating turnover and to avail bank loans. Searches were conducted and it was found that the entities created were non-functional or non-existent at the respective premises.
Investigation revealed that this group of firms had issued bogus invoices of INR 817 Crores and fraudulently claimed/ availed input tax credit of INR 147 Crore and passed on similar fake input tax credit amongst themselves or to various non-existent entities. It also appears that they also misappropriated Bank Loans of approx INR 127 Crores by adopting the above modus operandi.
Based on material evidence gathered during the enquiry, statements tendered and facts on records, the de facto Director was arrested on 18/08/2023 under Section 69 of CGST Act, 2017 for contravention of Section 132 of the CGST Act, 2017. He was produced before JMFC court Belapur on 18/8/2023 and remanded to judicial custody for 14 days i.e. till 31/08/2023.
During the financial year 2022-23, the CGST Belapur Commissionerate detected GST evasion of INR 628 Crores, recovered/ reversed INR 270 Crores and arrested 3 tax evaders. CGST officers are using data 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.
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