The Anti-Evasion Wing of the CGST Palghar Commissionerate has exposed a Rs 29.58 crore fake Input Tax Credit (ITC) racket. After conducting investigations over several months to unearth the racket, CGST officials have arrested three men on September 12. The racket, which involved eight bogus firms, came to light following intelligence gathered during the second All India Drive against fake GST registrations.

The primary firm implicated in the scam is H&D Company, located in Palghar. Investigations revealed several linked entities, including Hinglaj Packaging LLP, which were involved in issuing bogus invoices to illegally claim and pass on ITC without any actual supply of goods or services. Thus by this fraud, the firms benefiting from the illegality reduced their tax on output on the grounds that tax has already been paid during the input process. This constitutes a blatant violation of GST laws.