Mumbai: CGST Bhiwandi busts fake invoice racket worth Rs 132 crores, one held
11 September, 2022 | Pravina Srivastava
Mumbai Zone's Bhiwandi Commissionerate of Central Goods and Services Tax (CGST) detected a bogus invoice scheme worth Rs 132 crore and passing on/acquiring Rs 23 crore in Input Tax Credit.
Mumbai Zone’s Bhiwandi Commissionerate of Central Goods and Services Tax (CGST) detected a bogus invoice scheme worth Rs 132 crore and passing on/acquiring Rs 23 crore in Input Tax Credit.
Hasmukh Patel, primary suspect in the syndicate, was apprehended on September 9. He is currently being held in jail by a judge until September 23.
According to CGST reports, the anti-evasion division of the CGST Bhiwandi Commissionerate was looking into a number of fictitious companies, including M/s Mectech Steel Trading Private Limited, M/s UGSK Trader, M/s World Enterprises, M/s Rolex Enterprises, M/s HHT Enterprises, and M/s Yesh Enterprises, where various direct and indirect connections were found between these companies and Hasmukh Patel.
Based on particular intelligence, CGST Bhiwandi Commissionerate’s anti-evasion unit launched a search operation at the residence of the suspect, who was sought after in eight active investigation cases for his suspected involvement in GST fraud.
According to CGST reports, “An investigation revealed that the accused Hasmukh Patel is alleged to have established a web of these fake firms, through which they produced false invoices totaling Rs 132 crore and obtained/passed on false ITC totaling Rs 23.16 crore without providing any goods or services.”
Additionally, it was said, “The accused admitted that he had launched 36 phoney GST enterprises and built a network to transfer fraudulent Input Tax Credit that is dispersed among several GST Commissionerate.”
The aforementioned alleged mastermind was detained on September 9, 2022, for violating Section 132 of the CGST Act, 2017, based on tangible evidence acquired throughout the inquiry.