Mumbai Busts Massive GST Invoice Scam: Rs 25.73 Crore Fraud Exposed

Scam Uncovered in Mumbai: Fictitious Firms in GST Fraud

In a startling revelation, authorities in Mumbai have unearthed a sophisticated scam revolving around counterfeit Goods and Services Tax (GST) invoices. This elaborate scheme aimed to falsely claim an astronomical Rs 25.73 crore in GST input tax credits.

Arrest of Key Suspect: Kiran Kantharia

The Investigation Wing of the Central Goods and Services Tax (CGST) made a significant breakthrough in the case with the apprehension of Kiran Kantharia. Kantharia’s arrest sheds light on the intricate workings of this fraudulent operation.

Discovery of Phantom Entity: Hacnup Trading (OPC) Private Limited

Prompted by intelligence leads, authorities began probing the activities of Hacnup Trading (OPC) Private Limited, only to discover that the company was a ghost entity. This revelation cast suspicion on the legitimacy of its operations and raised red flags for investigators.

Confessions Unveiled: Involvement of Nilesh B Shah

Nilesh B Shah, purported director of the fictitious company, stunned investigators with his confession. Shah admitted to being complicit in a network of sham companies created solely to perpetrate input tax credit frauds. Allegedly acting under the directives of Kiran Kantharia and Manish Shah, this network operated under the guise of legitimate businesses.

Complicity of Kiran Kantharia Exposed

During interrogation, Kiran Kantharia confessed to his central role in orchestrating fraudulent tax credit schemes through these fabricated companies. His admissions implicated Manish Shah as the mastermind behind the operation, shedding light on the depth of deception involved.

Investigative Revelations: Illicit Availment of Tax Credits

A thorough investigation into the affairs of these bogus enterprises revealed shocking findings. These entities had unlawfully availed Rs 14.70 crore in input tax credit using counterfeit invoices, without any genuine supply of goods or services. Furthermore, they passed on ineligible input tax credit worth Rs 11.02 crore, further compounding the magnitude of the fraud.

Legal Ramifications: Arrest of Kantharia and Beyond

Kiran Kantharia has been arrested under pertinent provisions of the CGST Act, marking a significant milestone in dismantling this complex network of deceit. However, the ramifications of this scam extend beyond Kantharia’s arrest, highlighting the imperative for heightened vigilance and stringent measures to combat such fraudulent activities in the future.

Conclusion

In conclusion, the uncovering of this fraudulent GST invoice racket underscores the pressing need for robust regulatory mechanisms and vigilant enforcement to safeguard against financial malfeasance and uphold the integrity of the tax system.