In a major crackdown on GST fraud, the Maharashtra State GST Department on Wednesday arrested Pratik Tiwari, a trader from Akola, for allegedly availing bogus Input Tax Credit (ITC) worth Rs 9.97 crore through fake invoices without actual sale or purchase of goods.
He was produced before a magistrate court and has been remanded to 7 days of judicial custody.
Tiwari had registered his business under the names “Swami Sarth Kirana” and “Mahalaxmi Sales” from Dabki Road, Akola, dealing in cement, steel rods, and hardware.
Investigations revealed that he procured fake GST invoices from 7 traders in Maharashtra and 2 in Karnataka, and used them to claim ITC fraudulently on the GST portal.
These transactions were only on paper, with no actual movement of goods or business activity, thus amounting to tax evasion under GST laws.
During searches, traders from Vamgaon — Akash Adchule, Sajjan Puri, Anis Shah, and Grover Shah — admitted to issuing fake invoices to Tiwari without supplying any goods. Their confessions during the raids confirmed the existence of a widespread bogus billing network.
Since the tax evasion exceeded Rs5 crore, the offence falls under cognizable and non-bailable categories as per GST law.
An arrest warrant was issued by the additional commissioner of State GST, and the accused was taken into custody and produced in court.
The GST department has begun identifying other contractors and traders who issued or availed benefits using fake invoices. So far, more than five contractors have been identified and served notices for double recovery — original tax plus penalty. Officials confirmed that several contractors have already paid their dues after receiving notices.
Speaking on the case, Amravati division joint commissioner Sanjay Pokharkar said, “Tiwari issued fake GST invoices without any supply of goods to various contractors, leading to significant tax losses. We are now expanding the investigation and identifying all those involved in this fake billing racket.”
The GST department has stepped up surveillance on traders and contractors involved in fake billing and input tax credit frauds. More arrests and financial recoveries are expected in the coming weeks as the investigation progresses.
Source #TOI
