Authorities in Maharashtra’s Thane district have uncovered a massive GST evasion racket involving fraudulent input tax credits worth a staggering Rs 26.92 crore. The mastermind, identified as Kapadiya Mahamad Sultan, was arrested following a comprehensive investigation.
According to CGST Joint Commissioner Amit Kumar Singh, Sultan orchestrated the fraud by setting up 18 fictitious entities, which were used to generate fake invoices and claim input tax credit without any actual supply of goods or services.
Sultan, a Mira Road resident in Thane, was detained on Monday. Investigations revealed that he misused Aadhaar, PAN, and other KYC documents from various individuals. These documents were exploited to fraudulently register fake firms under GST, open bank accounts, and set up proxy transaction networks. The scam caused substantial financial losses to the exchequer.
Further investigations are underway, as the authorities work to uncover more details regarding the scale of the fraud and other possible culprits involved in the racket.
