Mumbai crime: Rs 408-crore GST fraud busted, 4 arrested

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The Directorate General of GST Intelligence (DGGI) here has arrested directors of four companies on charge of involvement in GST fraud totalling Rs 408 crore, an official said here on Thursday.

The DGGI's Mumbai Zonal Unit booked the Directors of Rane Megastructure Ptv Ltd, ACS Hardwar and Networking, Keshariya Metal Pvt Ltd, and its group company Shailaja Commercial Trade Frenzy Ltd.

They were accused of availing and utilising as well as passing on fictitious Input Tax Credits (ITCs) of Rs 408.67 crore on the basis of invoices received and issued without any actual supply of goods or services.

The DGGI-MZU probe revealed that ACS Hardware fraudulently claimed Rs 85.35 crore without supplying any good/services, and the same amount was passed on to Rane Megastructures on the strength of invoices with taxable value of Rs 474 crore, without any supplies.

Rane Megastructure further passed on the ITC of Rs 85.44 crore to another company without actual supply. The bogus ITCs were passed in a linear manner in which the ultimate beneficiary availed it and utilised it either for payment of own output tax liability or claiming refund of unutilised ITC.

In another instance, a group of companies like Keshariya Metal, Kajal Trading Co, Hi-Tech Impex, Gravity Alloys, and Sunshine Impex were found involved in creating fake invoices with the aim of availing and passing on ineligible ITCs of Rs 103.78 crore on the basis of fraudulent bills without actually supplying goods/services.

The third case involved Shailaja Commercial Trade Frenzy Ltd which issued and received bogus invoices with GST fraud of Rs 48.69 crore, which is illegal under the CGST Act, 2017, and a cognizable and non-bailable offence.

The four accused were presented in a designated court and were remanded in judicial custody till November 24, said an official.

Further investigations in the matter are underway.

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