Maharashtra GST Uncovers Major Fraudulent ITC Scheme and Arrests Key Operators

Maharashtra GST Exposes Fraudulent ITC Scheme

The Maharashtra Goods and Services Tax (GST) Department has arrested Mr. Brijesh Vanitlal Shah, a 48-year-old operator of M/s. Om Impex, along with representatives from two other companies, as part of a special investigation focusing on tax evasion. This operation occurred on August 4, 2022, specifically targeting firms suspected of falsely claiming tax benefits.

During the investigation at M/s. Om Impex, authorities uncovered that this company, along with M/s Brijeshwari Enterprises and M/s Chetna Metals LLP, fraudulently claimed Input Tax Credit (ITC) totaling Rs. 41.67 crore through illegal invoices amounting to Rs. 231.49 crore generated by suspected non-genuine taxpayers.

As a result of the investigation, the Metropolitan Magistrate Court has remanded Mr. Shah to judicial custody for 14 days. This operation was carried out under the guidance of Mr. Rahul Dwivedi (IAS), Joint Commissioner of State Tax, Investigation-A, Mumbai, with crucial support from Mr. Nilkanth Ghogare, Deputy Commissioner of State Tax, and Assistant Commissioner Mr. Santoshkumar Rajput, alongside Mr. Amol Suryawanshi and Mrs. Leena Kale.

To date, the State GST Department has made a total of thirty arrests in the current financial year. With the introduction of advanced analytical tools and improved inter-departmental coordination, the department expects this number to rise, reflecting a strong commitment to tackling fraudulent activities within the taxation system.