In a significant GST fraud bust, Maharashtra State GST Department arrested Pratik Tiwari, a trader from Akola, for allegedly claiming bogus Input Tax Credit (ITC) worth Rs 9.97 crore through fake invoices. Tiwari, operating businesses named “Swami Sarth Kirana” and “Mahalaxmi Sales” in Akola, was produced before a magistrate and remanded to seven days judicial custody.
The investigation revealed that Tiwari procured fake GST invoices from seven traders in Maharashtra and two in Karnataka, using these to fraudulently claim ITC on the GST portal. These transactions were merely on paper, with no actual goods movement or business activity, constituting tax evasion under GST laws.
During raids, traders from Vamgaon—Akash Adchule, Sajjan Puri, Anis Shah, and Grover Shah—admitted issuing fake invoices without supplying goods, confirming a wide bogus billing network. Given that the tax evasion exceeded Rs 5 crore, the offense is cognizable and non-bailable under GST law.
Following an arrest warrant issued by the additional commissioner of State GST, Tiwari was taken into custody. The department is now identifying other contractors and traders involved in similar fake invoice activities. More than five contractors have already been served notices for double recovery of tax plus penalties, with some paying dues promptly.
Amravati division joint commissioner Sanjay Pokharkar stated, “Tiwari issued fake GST invoices to contractors causing significant tax losses. We are expanding the probe to expose all involved in this fake billing racket.” The GST department has increased surveillance on traders and contractors involved in ITC frauds, with more arrests and recoveries expected soon.
