Authorities have busted a Goods and Services Tax (GST) evasion racket involving a fraudulent input tax credit (ITC) scam of Rs 26.92 crore and arrested its “mastermind” in Maharashtra ‘s Thane district, officials said on Wednesday.
The accused has been identified as Kapadiya Mahamad Sultan.
CGST Joint Commissioner Amit Kumar Singh said Sultan orchestrated the fraud by setting up 18 fictitious entities which were used to generate fake invoices and claim ITC without any actual supply of goods or services.
GST Scam of Rs 26.92 Crore Uncovered
According to preliminary investigation, Sultan exploited the Aadhaar, PAN, and other KYC documents of various people, who were paid in exchange for their personal information.
These documents were used to fraudulently register the fake firms for GST, open bank accounts, and create a network of dummy companies that engaged in proxy transactions, officials said.
The official further said the fraudulent input tax credits were then passed on to other firms, causing significant losses to the exchequer.
Sultan, who has admitted to his involvement in the fraud, was booked under relevant provisions of the CGST Act, the official said.
Following his arrest, Sultan was produced before a local court, which remanded him in 14-day judicial custody.
A probe was underway to identify others involved in the racket, officials said.
