CGST Fraud: Mumbai West Zone CGST Commissionerate arrests Sanghvi Traders Proprietor over CGST Fraud


In their major drive against
the CGST fraudsters and fake entities, engaged in availing and passing of fake ITC, officers of Anti-Evasion wing of CGST Commissionerate Mumbai West of Mumbai Zone unearthed a fake Input Tax Credit (ITC) Network of Rs 10.61 Crores involving bogus invoices of more than Rs 76 Crores and arrested the Proprietor of a Malad based company.

Acting on a tip off, an investigation Team of the CGST Commissionerate, Mumbai, initiated action against Sanghvi Traders. In the investigation, it was revealed that fake Input Tax Credit (ITC) of Rs.10.61 Crore was availed and passed on sans actual receipt or supply of goods, grossly violating the provisions of the CGST Act, 2017. Bogus invoices of more than Rs. 76 Crores were issued for this fraud.

Amid the investigation, statement of the proprietor of this company was recorded, wherein he admitted his role in this GST fraud. He was arrested on 27 July 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 on 27 July. The Magistrate has remanded him to judicial custody for 14 days.

The officers of Mumbai Zone are using data analysis and network analysis tools to identify potential fraudsters. This case is a part of special drive launched by the CGST Mumbai Zone against the fraudsters and fake ITC network dealers, who have been causing un-healthy competition for the honest taxpayers.

During the financial year 2021-22, the CGST Mumbai West Commissionerate has detected GST evasion of 603.88 Crores, recovered 68.21 Crores and arrested 7 tax evaders.

News Input: K.V.Raman



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