A man has been arrested in Maharashtra's Thane district for his alleged involvement in a GST input tax credit (ITC) fraud worth Rs 47.32 crore, officials confirmed on Thursday.
According to a press release from the Thane commissionerate of Central GST, the accused, identified as Vivek Rajesh Maurya, was operating through a firm named M/s KSM Enterprises. The investigation revealed that the firm had fraudulently availed and passed on ITC without any actual supply of goods or services, thereby causing a significant loss to the exchequer.
The fraud was unearthed using internally developed intelligence systems and advanced data analytics tools employed by GST officials. These tools flagged suspicious transactions, leading to deeper scrutiny of the firm's activities.
A search operation at Maurya's residence resulted in the seizure of crucial evidence, including bank passbooks, chequebooks, mobile phones, and documents linked to several other fraudulent firms. Officials noted that these findings point to a wider network of bogus companies created to facilitate the fake ITC racket.
Maurya was arrested on August 19 and produced before a judicial magistrate, who remanded him to 14 days of judicial custody. The GST department added that the investigation is ongoing, and more names are likely to emerge as the probe progresses.
Background on GST ITC Fraud
Under the GST regime, Input Tax Credit (ITC) allows businesses to set off taxes paid on inputs against their output tax liability, preventing double taxation. However, fraudulent claims of ITC through fake invoices or non-existent firms have been a recurring challenge for tax authorities, prompting the use of advanced data monitoring systems.
Authorities said they remain committed to cracking down on such frauds, which not only erode government revenue but also distort fair competition among genuine businesses.
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