In a major crackdown on fraudulent Input Tax Credit (ITC) claims, the Central Goods and Services Tax (CGST) Palghar Commissionerate has uncovered a fake ITC racket amounting to Rs. 59.11 crore. The operation led to the arrest of three individuals involved in orchestrating the scheme, including Chirag Ashok Raval, Swaraj Prafullchandra Dave, and Parth Jitender Raval. The trio allegedly registered eight non-genuine firms, including the key entity, M/s H&D Company, based in Palghar, Maharashtra, using their family members’ names.
The scam involved issuing fake invoices without the supply of actual goods or services to fraudulently claim ITC, violating key provisions of the Goods and Services Tax (GST) law. Intelligence gathered during the ongoing 2nd All India Drive against fake registrations triggered this investigation, revealing Rs. 29.53 crore of ITC availed and Rs. 29.58 crore passed on through the fraudulent transactions.
The arrested individuals are charged under Section 69 of the CGST Act, 2017, for offences detailed in Section 132(1)(b) and (c). They are currently in judicial custody until September 25, 2024, as the authorities intensify their probe to dismantle similar fraudulent networks.
This discovery highlights the government's ongoing efforts to curb GST evasion and protect revenue through the special all-India anti-fake registration drive.
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