Mumbai, 11 October 2024: The CGST Mumbai Zone has busted two significant fake Input Tax Credit (ITC) rackets during the “Second Special All-India Drive against Fake Registrations.” The operations revealed fraudulent ITC amounting to ₹140 crore, facilitated by the issuance of fake invoices totaling ₹760 crore. Two individuals have been arrested for defrauding the government exchequer. After extensive search operations and investigation, it was discovered that the masterminds of the two rackets have floated 92 dubious firms to fraudulently avail ITC by generating fake invoices with the sole intent to pass on fraudulent ITC to its various recipients without actual movement of the goods/services, as informed by Additional Commissioner, Chief Commissioner Office, CGST, Mumbai Zone Dipin Singla. 

In the case under Thane CGST Commissionerate, Shri Hitesh Shantilal Vasa, a mastermind who has registered 22 non-bonafide firms/companies has been arrested on 10.10.2024. He was involved in availing fraudulent ITC of Rs. 48 crores and passed on ITC of Rs. 44 crores, totally 92 crore without actual movement of the goods/services. He was also involved in circular trading to inflate turnover of these non-genuine firms. He has misused KYC documents viz. Aadhar card, PAN card, etc. of other persons for the purpose of obtaining GST registrations and opening bank accounts. He was arrested under Section 69 of the CGST Act 2017 for contravention of Section 132 of the CGST Act, 2017 and remanded to 14 days’ judicial custody.

In the other case, Palghar CGST Commissionerate, has busted a racket involving issuance of fake invoices worth Rs 320 Crore without actual supply of goods and services with an intent to avail fraudulent ITC of Rs. 22 Crore and passing on fraudulent ITC to the tune of Rs 26 crore, totalling Rs 48 crore, using 70 shell firms without actual movement of goods/services. The kingpin of the racket, Shri. Ashok Harilal Oza was arrested on 10.10. 2024 and remanded to 13 days judicial custody.