CGST Commissionerate arrests three persons in two cases related to fake availment and utilization of ITC



Quick Summary
The CGST Thane Rural Commissionerate has arrested three individuals in connection with two separate cases of fake Input Tax Credit (ITC) fraud. In one case, two people were arrested for fraudulently availing and utilising ITC worth Rs 100.63 crore using a fake firm, passing on Rs 75.36 crore to suspicious entities. In the second case, one person was arrested for availing fake ITC amounting to Rs 7.55 crore without any actual movement of goods or services. Both cases are under further investigation.

CGST, Thane Rural Commissionerate arrests three persons in two cases related to fake availment and utilization of ITC

In one of the cases, two accused were arrested on the ground that they were found actively involved in the racket of availing and utilizing fake/ fraudulent ITC under the name and style of a firm, by misusing the identity of a Rickshaw Driver. The accused had undertaken transactions in the firm with the sole intention of availing inadmissible credit and utilizing the same without any actual movement of goods/ services.

The total fraudulent ITC availed in the name of the said firm is Rs. 100.63 Crores and ITC amounting to Rs 75.36 Crores has been passed on to various non-existent/ fake/suspicious entities. The accused persons were handling the records and return filing of the said firm and were found to be in possession of other incriminating documents pertaining to the said firm. Both the persons had violated the provisions of Section 132 of CGST Act, 2017 and were accordingly arrested under Section 69 of the CGST Act, 2017, by the officers of Thane Rural CGST & C. Ex. Commissionerate, on 23rd March, 2022. Both the accused were produced before the Additional Chief Metropolitan Magistrate, Mumbai on 24th March, 2022 and both were remanded to judicial custody for 14 days.

CGST Thane Arrests 3 in Fake ITC Fraud Cases

In the second case, one person was arrested on 24th March, 2022 on the ground that the accused was found actively involved in availing fake/ fraudulent ITC passed on by various non-existent/bogus/fraudulent entities amounting to Rs. 7.55 Crores without actual movement of goods or services. The said amount of fraudulent/fake ITC availed is likely to increase during further investigation. The accused was produced before the Additional Chief Metropolitan Magistrate, Mumbai on 25th March, 2022 and was remanded to judicial custody for 14 days.

Further investigation in both the cases is in process.

FAQ :

Three people were arrested by the CGST Thane Rural Commissionerate.

The arrests were made in two cases related to the fake availment and utilisation of Input Tax Credit (ITC).

In the first case, the fraudulent ITC availed was Rs 100.63 Crores, and Rs 75.36 Crores was passed on to other entities.

In the second case, the fake ITC availed amounted to Rs 7.55 Crores.

The first two accused were arrested on 23rd March 2022 and remanded to judicial custody for 14 days on 24th March 2022. The third accused was arrested on 24th March 2022 and remanded to judicial custody for 14 days on 25th March 2022.

No, further investigation in both cases is currently in process.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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