Mumbai Trader Arrested for ₹10 Crore GST Scam via Fake Cement Firm
Mumbai trader arrested for Rs. 10 crore GST fraud using a fake cement trading firm to claim bogus input tax credit
GST Scam The Maharashtra State Tax Department has arrested a 44-year-old man from Vikhroli for his role in a fake Goods and Services Tax (GST) input tax credit scam worth Rs. 10.03 crore. The accused, Santosh Vitthal Londhe, was the authorised signatory of a firm named M S Santosh Enterprises, which claimed to deal in cement and steel products.
According to The Free Press Journal, M S Santosh Enterprises was registered at Shanti Shopping Centre in Mira Road. The firm claimed to be trading in cement, steel angles, and other iron and non-alloy products, but when investigators visited the registered address, they found that the business did not exist at the location. There was no sign of commercial activity, and the premises appeared to be non-operational.
The investigation revealed that the firm had declared an outward tax liability of Rs. 10.03 crore between December 2024 and May 2025. But during this period, the firm did not generate a single e-way bill.
Under the GST system, e-way bills are required for transporting goods worth over a certain amount. The absence of e-way bills indicated that no goods were actually transported, and the transactions were only on paper.
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The department believes that Londhe used the fake firm to generate bogus invoices. These invoices were used to fraudulently claim input tax credit without any real supply of goods or services. The credit may also have been passed on to other firms, allowing them to reduce their own tax liabilities illegally.
The Maharashtra GST Department arrested Londhe after gathering evidence and verifying the non-existence of the business. He has been charged under various sections of the Central Goods and Services Tax Act, 2017. As per the law, tax evasion involving amounts over Rs. 5 crore is a serious offence that is non-bailable and punishable with up to five years in prison.
Officials said the investigation is still ongoing. Authorities are now working to identify other businesses or individuals who may have benefited from the fake tax credits issued by M S Santosh Enterprises. More arrests may follow as the case unfolds.
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