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Fake GST Invoice Racket: One Person Arrested

Fake GST Invoice Racket: One Person Arrested

Vide Press Release (Mumbai) dated 11.08.2022, it was informed that Officers of CGST Mumbai South Commissionerate have busted a fake GST invoice racket.

The director of M/s Ammy International Journal (OPC) Private Limited was arrested under section 69 (Power to arrest) of the CGST Act, 2017 for contravention of section 132 (Punishment for certain offences) of the CGST Act, 2017.

He was produced before the Hon’ble Additional Chief Metropolitan Magistrate, Esplanade, who then remanded him to judicial custody for 14 days.

The officer informed that, the fake invoices were used, and ITC of around INR. 27.59 CR was availed, bogus invoices amounting to INR. 455 CR were found.

The investigation was being initiated by the CGST Mumbai Zone, the anti-evasion wing of CGST Mumbai South Commissionerate.

The tax payer was non-functional at the registered place of business. The investigation was not joined by the director of the company, but joined as on 10.08.2022 and during that he admitted tax fraud.

Further it was revealed that ITC has been claimed fraudulently amounting to INR. 14.15 CR and INR. 13.44 CR was being passed on to various entities that were unreal. Also, invoices were issued without actual supply.

GST evasion amounting to INR. 949 CR was being detected by the CGST Mumbai South Commissionerate (F. Y. 2021-22), out of which INR. 18 CR has been recovered, alongside 9 tax evaders has been arrested. The arrest of the director of M/s Ammy International Journal (OPC) Private Limited is the sixth arrest in the current financial year by the CGST (Mumbai) officers.

Tools relating to data analysis and network analysis are being used to track down potential fraudsters.

The aforementioned is a part of a special drive against the tax fraudsters and fake ITC networks, launched by the CGST Mumbai Zone.

Also, in the coming days, this special drive will be intensified.



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