GST Scam Busted: Mastermind Behind Rs 26.92 Crore Fraud Arrested

Authorities have dismantled a GST evasion racket in Thane district, arresting Kapadiya Mahamad Sultan, the alleged mastermind behind a Rs 26.92 crore input tax credit scam. Sultan set up 18 fake entities to generate false invoices and fraudulently claim ITC, exploiting personal documents for registration.

A massive GST evasion racket involving fraudulent input tax credits worth Rs 26.92 crore has been uncovered by authorities in Maharashtra's Thane district. The operation led to the arrest of the so-called mastermind, Kapadiya Mahamad Sultan, according to officials.

The accused, Sultan, allegedly orchestrated the fraud through 18 fictitious entities. These fake companies were utilized for generating false invoices and claiming input tax credit without any actual supply of goods or services, stated CGST Joint Commissioner Amit Kumar Singh in an official release.

Sultan, a resident of Mira Road in Thane, was detained on Monday. Investigations revealed he misused Aadhaar, PAN, and other KYC documents from various individuals, compensating them for their personal information. These documents facilitated the fraudulent registration of fake firms for GST, the opening of bank accounts, and the creation of proxy transaction networks, as explained in the release. The scam resulted in significant losses to the exchequer.

(With inputs from agencies.)