Rs 35-crore racket of fake Input Tax Credit busted in Mumbai

MUMBAI: Continuing its drive against tax evasion, the CGST Mumbai Central Commissionerate has busted a racket of generating fake Input Tax Credit (ITC) notes worth Rs 35 crore and nabbed the kingpin of the scam, an official said here on Wednesday.

The CGST said that as per investigations, the accused has generated the fake ITCs and passed them to more than 15 companies in and around Mumbai.

The accused — who has been remanded to judicial custody for 14 days — was receiving the fake ITC and passing it in the downward supply chain without any actual receipt or supply of goods. The latest case is part of the series detected by the CGST sleuths Mumbai in the past three months with several arrests. Till date, the CGST' special campaigns have helped unearth more than 50 networks of tax evaders and confirmed tax evasion of a staggering Rs 3,000 crore. Of this amount Rs 400 crore has been recovered and the CGST has nabbed around 24 persons so far as part of the special drive, said the official. (IANS)

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