The Maharashtra State GST department detained one individual for filing a bogus ITC claim for Rs 14 crore based primarily on fabricated bills totalling roughly Rs 102 crore. The government has also received at least Rs 8 crore in income from vendors typically associated with M/s. Cermix.
As part of the Maharashtra Goods and Service Tax Department’s Special Anti-Evasion Drive against fraudsters and tax evaders, the proprietor of M/s. Cermix was arrested on April 7 for generating, availing, and utilising fraudulent GST Input Tax Credit (ITC) of Rs 14 crores from bogus invoices of Rs 102 crores.
The inquiry is ongoing to see whether there is any further connection to this scam. The proprietor of M/s. Cermix has been positioned in judicial detention for 14 days by the Metropolitan Magistrate Court.
This joint investigation was carried out by Amol Suryawanshi, Assistant Commissioner of State Tax, under the supervision of Nilkanth S Ghogare, Deputy Commissioner of State Tax, and Rahul Dwivedi (IAS), Joint Commissioner of State Tax, Investigation-A, Mumbai.
To detect tax evaders, the GST department employs sophisticated network analytic technologies and collaborates with other agencies. This would serve as a strong reminder to all tax evaders that the Maharashtra GST department will not tolerate tax evasion in the coming future.