<p>Mumbai: In a major swoop, the Central Goods and Services Tax (CGST) department has busted a fake GST invoice racket involving fraudulent transactions to the tune of Rs 140 crore and arrested the mastermind from Mira Road in Thane district.</p><p>The officers of Thane CGST’s Commissionerate under CGST’s Mumbai Zone carried out the investigations.</p>.GST officers detect Rs 35,132 cr ITC evasion by over 17,000 fake firms.<p>The operation by the suspect was designed to avail fraudulent Input Tax Credit (ITC) amounting to Rs 26.92 crores. </p><p>Following an investigation, Kapadiya Mahamad Sultan, the mastermind behind the racket, has been arrested for creating and managing 18 fake firms to facilitate proxy and dummy transactions, a press statement issued by CGST said. </p><p>Sultan was accused of creating a network of fake firms to generate fraudulent invoices and illegally pass on ITC without any actual supply of goods or services.</p><p>The investigation revealed that over 18 dummy entities including Royal Enterprise, Saraswati Enterprises, Lucas Infratrade LLP and Maruti Trading were established solely for the purpose of defrauding the government. </p><p>To carry out the scam, Sultan misused Aadhaar, PAN and other KYC documents of individuals, which he obtained in exchange for money. He then used these credentials to fraudulently secure GST registrations and open bank accounts under the names of fake firms. </p><p>Furthermore, in statements recorded under Section 70 of the CGST Act, 2017, he admitted to availing and passing on fraudulent ITC.</p><p>The authorities Sultan under Section 69 of the CGST Act for violations under Section 132. </p><p>He was presented before the Chief Judicial Magistrate, Thane, on Tuesday and has been remanded to 14 days of judicial custody. <br></p>
<p>Mumbai: In a major swoop, the Central Goods and Services Tax (CGST) department has busted a fake GST invoice racket involving fraudulent transactions to the tune of Rs 140 crore and arrested the mastermind from Mira Road in Thane district.</p><p>The officers of Thane CGST’s Commissionerate under CGST’s Mumbai Zone carried out the investigations.</p>.GST officers detect Rs 35,132 cr ITC evasion by over 17,000 fake firms.<p>The operation by the suspect was designed to avail fraudulent Input Tax Credit (ITC) amounting to Rs 26.92 crores. </p><p>Following an investigation, Kapadiya Mahamad Sultan, the mastermind behind the racket, has been arrested for creating and managing 18 fake firms to facilitate proxy and dummy transactions, a press statement issued by CGST said. </p><p>Sultan was accused of creating a network of fake firms to generate fraudulent invoices and illegally pass on ITC without any actual supply of goods or services.</p><p>The investigation revealed that over 18 dummy entities including Royal Enterprise, Saraswati Enterprises, Lucas Infratrade LLP and Maruti Trading were established solely for the purpose of defrauding the government. </p><p>To carry out the scam, Sultan misused Aadhaar, PAN and other KYC documents of individuals, which he obtained in exchange for money. He then used these credentials to fraudulently secure GST registrations and open bank accounts under the names of fake firms. </p><p>Furthermore, in statements recorded under Section 70 of the CGST Act, 2017, he admitted to availing and passing on fraudulent ITC.</p><p>The authorities Sultan under Section 69 of the CGST Act for violations under Section 132. </p><p>He was presented before the Chief Judicial Magistrate, Thane, on Tuesday and has been remanded to 14 days of judicial custody. <br></p>