Mumbai Tax Authorities Bust Rs 44 Crore GST Fraud Racket

Tax authorities in Mumbai have broken up a fake input tax credit (ITC) scheme involving Rs 44 crore under GST, arresting a man named Hitesh Vasa for orchestrating the fraud through 22 non-bonafide firms. Vasa allegedly availed and disseminated inadmissible ITC without actual movement of goods.

In a significant crackdown, Mumbai's tax authorities have exposed a Rs 44 crore Goods and Services Tax (GST) fraud and detained its alleged mastermind. The Central Excise and GST Commissionerate of CGST Mumbai Zone led the investigation, which unveiled a fake input tax credit (ITC) racket.

The perpetrator, identified as Hitesh Vasa, reportedly established 22 non-bonafide companies to exploit and perpetuate fraudulent ITC transactions. Authorities revealed that Vasa had availed Rs 48 crore of inadmissible ITC and channeled Rs 44 crore through these shadow firms without any genuine trade activity.

Further investigations disclosed that Vasa was involved in circular trading to artificially inflate the turnover of these fictitious entities. The GST system's ITC mechanism was intended to prevent double taxation by offsetting taxes paid on purchases against taxes collected on outputs, but Vasa allegedly manipulated it to his advantage.

(With inputs from agencies.)