The Economic Offences Cell recently apprehended Adil Hasanbhai Bajuber, who is believed to be the mastermind behind a tax credit scam involving a significant amount of money. Adil was arrested at Mumbai Airport while attempting to flee to Dubai.
A complaint filed with the Crime Branch revealed that Babubhai Patel, the owner of office numbers 301 to 303 in Surat’s Mangalam Complex building, was involved in the scam. It was discovered that 21 rental agreements with forged signatures were created in 2022, using the names of Babubhai’s offices.
To facilitate Goods and Services Tax (GST) fraud, fake billing and financial transactions were carried out through the registration of 21 dummy firms. These fraudulent activities enabled them to receive tax credits from the government.
Adil Hasanbhai Bajuber, the alleged mastermind, had been wanted in connection with the case. He was apprehended at Mumbai Airport based on a lookout circular issued by the authorities. The Eeo-Cell apprehended him and brought him back to Surat.
During interrogation, Adil confessed to creating a fake Aadhar card for Babubhai using the DSE application. With the help of his accomplices, Nilesh Modi and Paresh Patel, he forged rental agreements and established shell firms. The investigation has uncovered billing transactions amounting to Rs 52.86 crore, involving 13 shell firms.
In an allegedly fake claim of availing Input Tax Credit ( ITC ), the Maharashtra Goods & Services Tax (GST) department on Saturday arrested a contractor for using fake invoices amounting to ₹87.08 crore.
According to the GST department, the arrest is the outcome of an investigation conducted in the case of Dhanalaxmi Electrical (Belapur) under a special operation carried out against tax-evading firms.
The Central Board of Indirect Taxes and Customs (CBIC) has released guidelines for the all-India drive against fake Goods and Services Tax (GST) Registrations to tackle loss by bogus Input Tax Credit (ITC) Claims.
Indian GST Statutory Compliances: A Comprehensive Guide for Tax Professionals and Accountants and Special discussion on Blocking of Credit as per Rule 86A and position as per the All India special drive by Taxscan Academy in association with CA Abhishek Raja Ram: Click here to Register for the Course.
The instructions released observed that various modus operandi of obtaining such fake registrations have been detected by Central and State Tax administrations. In some casBrain behind Tax Credit Scam es, forged documents, such as forged electricity bills, property tax receipts, rent agreements, etc. are being used as proof of principal place of business to obtain GST registration.
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