Thane Crime: Chartered accountant arrested for generating fake input tax credit of Rs 92 crore

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In a major Anti-Evasion drive by the Central Goods and Services Tax (CGST) launched by Mumbai Zone, the Thane rural commissionerate on Wednesday arrested a charted accountant for allegedly generating fake input tax credit (ITC) of Rs 92 crore involving fake invoice of more than Rs 500 crores without actual receipt of goods.

According to CGST, during the course of investigation, it was revealed that the fraudster had used the identity of a homemaker to create a firm called M/s. Shraddha Electrical located at Ambernath, Thane. The agency also found that a group of persons, including arrested chartered accountant were engaged in fake ITC generation racket and had passed on the same without any movement of goods.

Also read: Mumbai Crime: Man arrested for issuing fake GST invoice worth Rs 60.77 crore

After a detailed interrogation and admission by the chartered accountant that he had generated fake ITC and passed on the same without any movement of goods and had violated the provisions of Section 132 of CGST Act, he was arrested under Section 69 of the CGST Act on Wednesday.

The accused was produced before the Additional Chief Metropolitan Magistrate, Mumbai and the court has remanded him to judicial custody for 14 days.

"This case of detection of fake ITC is a part of special Anti-Evasion drive launched by CGST, Mumbai Zone which involve intensive data mining and data analytics using various IT tools. The motive behind this drive is to help the honest and compliant taxpayers, to kill the unfair competition generated by the fake ITC, and thus help the honest and compliant taxpayers with the intent to mop up maximum revenue in the service of nation," a CGST officer said.