The Maharashtra State Tax Department, Thane Zone, has arrested a Mira Road resident, Srikanth Vaidyanath, for his alleged involvement in a massive fake GST Input Tax Credit (ITC) racket worth Rs 8.43 crore. Officials said the accused generated and passed on fraudulent tax credits through a non-existent firm, M/s Srikanth Enterprises.
The arrest was carried out by the State Tax Investigation Branch, Bhayandar, following a detailed probe into suspicious GST activities.
Shell Firm Exposed in Mira Road
According to a report by Mid-day, investigators found that M/s Srikanth Enterprises existed only on paper. When tax officers visited the firm's registered address: C-118, Mira Darshan Complex, MTNL Road, Jangid Circle, they discovered that the premises lacked any signs of commercial activity. There were no business records, stock registers, invoices, or ledger books, indicating that the entity was a shell firm used solely for issuing fake invoices.
Family Denied Knowledge of Business
Officials revealed that Srikanth had obtained GST registration using his PAN card, Aadhaar and an electricity bill, verified through OTP-based authentication. However, during physical verification, his family members, including his parents and wife, denied any awareness of the business, further confirming the fraudulent setup.
Fake ITC Chain Uncovered
Investigations showed that Srikanth availed fake ITC worth Rs 8.43 crore from M/s Vishal Enterprises and passed on the same credit to M/s Shree Kuldevi Industries Pvt Ltd during May and June 2025. Officials stated that the transactions were conducted purely through bogus invoices and electronic entries, without any actual movement of goods, a clear violation of the GST Act.
Arrest and Ongoing Investigation
The accused was arrested on November 7 under relevant provisions of the Goods and Services Tax Act and has been remanded to judicial custody. A senior officer from the Thane Zone confirmed that the investigation is ongoing to identify other beneficiaries and trace additional shell entities linked to the network. Authorities are also examining bank transactions to uncover the complete money trail and assess the full extent of the fraudulent operations.
The Maharashtra GST Department has intensified its crackdown on fake ITC rackets across the state to safeguard revenue and deter tax evasion.
CAclubindia
