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Tax evasion worth over Rs 5,000 cr by Mumbai traders unearthed by CGST officials

Mumbai tax evasion: The central intelligence unit was set up in September 2021 to analyse data and weed out tax evasion in Mumbai.

Written by Khushboo Narayan | Mumbai |
Updated: January 24, 2022 11:26:26 am
GST officials detect over Rs 830 crore tax evasion by Delhi-based pan-masala manufacturing unit The unit comprises 15 tax officers who use data analytics and network analysis tools to identify fake ITC networks and potential tax evasion cases.

The central intelligence unit of the Central Good and Services Tax (CGST) in Mumbai has unearthed tax evasion of Rs 5,200 crore by city-based traders over four months from September 2021 and January 2022, sources told The Indian Express.

The central intelligence unit was set up in September 2021 to analyse data and weed out tax evasion in Mumbai. The unit comprises 15 tax officers who use data analytics and network analysis tools to identify fake ITC networks and potential tax evasion cases. The information generated by the central intelligence unit is then sent to field formations that are authorised to take action against the evaders.

According to sources, the information generated by the central intelligence unit in Mumbai has helped the CGST department book over 550 cases and arrest 43 accused of violating norms in the last four months. The department has also recovered over Rs 625 crore from the tax evasion cases booked by it so far, said a source.

Most of the cases booked by the CGST department in Mumbai pertain to fraudulent claims and passing off input tax credit (ITC) without actually availing of any goods or services.

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For example, on January 21, the CGST wing in Bhiwandi arrested the proprietor of Adarsh Scrap Traders for evading Rs 11.4 crore in taxes by generating and passing fake ITC through bogus billing of Rs 63 crore. The tax authority found that at least 25 more entities based in Thane, Nagpur, Pune, Delhi and Nashik are a part of the alleged fraud perpetrated by Adarsh Scrap Traders.

Earlier this month, the Thane wing of CGST arrested a father-son duo for running a fake ITC network of Rs 22 crore. In a separate case, the Mumbai Central Commissionerate arrested a timber merchant on January 5 for availing fake ITC of Rs 5.47 crore from non-existing entities.

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