The Maharashtra State Tax Department and Central GST (CGST) authorities have arrested two individuals in separate cases of fake Input Tax Credit (ITC) scams, cumulatively amounting to over Rs 28.6 crore.
Maharashtra GST Nabs Vikhroli Resident in Rs 10 Crore ITC Fraud
The Maharashtra State Tax Department has arrested Santosh Vitthal Londhe, a 44-year-old resident of Vikhroli, for allegedly availing and passing on fraudulent ITC worth Rs 10.03 crore without any actual supply of goods or services.
Londhe, who was the authorised signatory of M/s Santosh Enterprises, a firm registered at Shanti Shopping Centre in Mira Road, claimed to be trading in cement, steel angles, and iron/non-alloy steel products. However, during the probe, tax officials discovered that the firm did not exist at the registered address and had no business operations.
The department further revealed that between December 2024 and May 2025, the firm declared an outward tax liability of Rs 10.03 crore, but no E-way bills were generated during the financial year 2024-25, indicating no genuine movement of goods.
CGST Palghar Uncovers Rs 18.66 Crore Bogus Invoicing Scam
In a parallel development, the CGST Palghar Commissionerate under the Mumbai Zone arrested one person in a Rs 18.66 crore ITC fraud case. Acting on specific intelligence inputs, investigators identified a bogus invoicing operation involving the fraudulent availment and passing of ineligible ITC without the actual supply of goods.
According to CGST officials, the accused proprietor admitted during questioning that he had started the company on the instructions of another individual. Investigations showed that the firm had availed Rs 9.86 crore in fake ITC and passed on Rs 8.80 crore, all through fabricated invoices.
The accused was taken into custody under relevant provisions of the CGST Act, 2017, following the gathering of documentary and financial evidence.
Ongoing Crackdown on GST Evasion
These back-to-back arrests highlight the government's intensified efforts to curb fake ITC rackets that undermine the integrity of India's GST regime. Authorities have been actively using data analytics, real-time invoice matching, and e-way bill monitoring to detect suspicious transactions.
Both cases underscore the need for robust KYC verification, stricter registration norms, and tighter invoice matching protocols to prevent the proliferation of shell companies and bogus trade practices.
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