CGST Commissionerate arrests co-conspirator in ITC fraud

Anti-Evasion Unit of Mumbai South CGST Commissionerate has arrested the co-conspirator in a case of M/s New Laxmilal & Co. (GSTIN 27ACAPS6257K1ZS) involving fake ITC of Rs. 11.07 Cr on the strength of bogus invoices of Rs 62.90 Cr, without actual movement of goods. This case is a part of Anti-Evasion drive launched by CGST, Mumbai Zone against the tax evaders. The accused has accepted that he supplied bogus invoices to M/s New Laxmilal & Co. involving network of seven non-existent entities. Based on material evidence and his confessional statement, the accused was arrested under Section 69 of the CGST Act, 2017 for committing offences under Section 132(1) (b) & (c) read with Section 132(5) of CGST Act, 2017.

He was produced before Additional CMM court, Mumbai today, 26th April 2022 and was remanded to judicial custody of 14 days. The proprietor of M/s New Laxmilal & Co. had already been arrested in Dec 2021 for availing and utilizing fake ITC on the strength of bogus invoices of Rs 62.90 Cr. As a part of this drive, CGST Mumbai South Commissionerate has detected tax evasion of Rs 876 Crores approx., recovered Rs. 14.4 Crores approx. and arrested eight persons during the last seven months. The CGST department is using state of the art and sophisticated data analytics and network analysis tools using Artificial Intelligence, to identify potential and chronic tax offenders. Department is also coordinating with other tax and law enforcing authorities for nabbing tax evaders.

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