Fake ITC Fraud Worth Rs 48 Crore Uncovered by CGST in Mumbai

The anti-evasion team of Thane Central Excise & CGST Commissionerate Mumbai Zone uncovered a Rs.48 crore fake Input Tax Credit (ITC) racket. Hitesh Shantilal Vasa, the mastermind, registered 22 shell companies using KYC documents of relatives and others to conduct proxy transactions and avail Rs. 48 crores in ITC benefits. Vasa passed on Rs. 44 crores in fake ITC to other firms without actual movement of goods or services. He was involved in circular trading to inflate turnover. Vasa was arrested under Section 69 of the CGST Act, 2017, and remanded to 14-day judicial custody. Authorities continue to investigate others involved in the fraud.