Accountant Arrested by the GST Department for a GST Fraud of Rs. 181 crore using bogus bills of Rs. 1000 crore.

To the tune of Rs.181 crore in fraudulent GST Input Tax Credit (ITC) bills, the CGST Palghar Commissionerate has detained an accountant.

M/s Nithilan Enterprises has been accused of fraudulently obtaining and passing on Input Tax Credit (ITC) by generating fake invoices without receiving or supplying any goods or services. Data mining and data analysis revealed this. A thorough inquiry into the matter revealed that a 27-year-old man who had educated until the 12th grade and was now working as a freelancer accountant and GST consultant had stolen the identity of one of his clients in order to perpetrate GST frauds for financial benefit.

By way of solid evidence, the accountant admitted to issuing bogus bills totaling over Rs.1000 crores, as well as passing fake ITC worth Rs.181 crores without any goods moving. The CGST authorities arrested him under Section 69 of the CGST Act 2017 on Tuesday, January 25, 2022, for offences punishable under Section 132 of the CGST Act 2017. The accused appeared before the Additional Chief Metropolitan Magistrate in Mumbai on the same day. For the next 14 days, the Hon’ble Court has ordered him to remain in custody in judicial custody. If found guilty, the defendant faces a prison sentence of up to five years and a fine.

This man is suspected to be part of an organised crime group that lures unsuspecting individuals into registering for GST just for the purpose of stealing their personal data after they do so. This stolen identity is used to manufacture, collect, and distribute phoney ITC without actually providing or receiving any goods or services. The network’s kingpin, as well as other participants and beneficiaries, are being sought.

Fraudsters and tax dodgers are being targeted by the Mumbai CGST zone in its anti-evasion campaign against honest and compliant taxpayers who have been unfairly competing with them and stealing from the government’s coffers. Two persons have been detained and Rs460 crore in tax fraud has been found by Palghar Commissionerate as part of this drive. The CGST Department announced that it would step up its efforts to catch tax fraudsters and evaders in the coming days.