Rs 263-crore fake GST invoice racket busted in Mumbai, one arrested

Mumbai, Oct 22, 2023 

Central GST officials busted a fake GST invoice racket in Mumbai, involving fraudulent claims of Rs 7.66 crore in GST input tax credit on Rs 263 crore worth of invoices.

A fake Goods and Services Tax (GST) invoice racket, which was used to fraudulently claim a GST input tax credit (ITC) of Rs 7.66 crore on invoices worth Rs 263 crore, has been busted in Mumbai.

The Central GST officials have also arrested the proprietor of a private firm named Shree Balaji Gold in connection with the case, officials said on Saturday.

Acting on a tip-off received from the Central Intelligence Unit of CGST Mumbai Zone, the anti-evasion wing of CGST Mumbai South Zone initiated an investigation against the firm for fraudulently availing fake Input Tax Credit by issuing invoices without actual supply of goods, as stated by the officials.

"During the search conducted at the registered premises of Shree Balaji Gold, it was discovered that no legitimate business operations were carried out at the principal place of business of this entity," stated the CGST officials. During the interrogation, the proprietor of the firm admitted his role in this tax fraud.

"Further investigation has revealed that this firm had fraudulently claimed input tax credit on bogus invoices worth Rs 263 crores, involving ITC of Rs 7.66 crore, without any supply of goods. The bogus invoices were received for the purpose of availing inadmissible input tax credit in a fraudulent manner, without the actual receipt of goods, in gross violation of the provisions of the CGST Act, 2017," said a statement issued by the investigating agency.

The accused was presented before the court and remanded to judicial custody for 14 days.

[India Today]