CGST Mumbai South arrests Partner of M/s Rushabh Bullion for availing fake GST ITC of Rs. 7.11 Cr.

Anti-Evasion wing of CGST Mumbai South arrested Partner of M/s Rushabh Bullion, trader of gold and silver articles on February 12, 2022 for availing fake GST Input Tax Credit (ITC) amounting to Rs. 7.11 Crores from fake/non-existent entities.

Investigation in this case was undertaken based on inputs provided by the Central Intelligence Unit (CIU) of Mumbai Zone at the Zonal Headquarters headed by Principal Chief Commissioner. Search was conducted at the principal place of business of M/s Rushabh Bullion (GSTIN 27AAMR1367B1Z9) on February 11, 2022. The partner of M/s Rushabh Bullion in his statement dated February 12, 2022 admitted to availing ineligible ITC amounting to Rs. 7.11 Crores from two entities namely M/s. Goldmine Bullion, Mumbai and M/s Riddhi Siddhi Gold, Mumbai who were found to be fake/non-existent upon verification of their Principal Place of Business. The fake ITC availed by M/s Rushabh Bullion from M/s. Goldmine Bullion and M/s Riddhi Siddhi Gold was Rs. 4.89 Crores and Rs. 2.22 Crores respectively.

Based on evidences collected during investigation and statement, Partner of M/s Rushabh Bullion was arrested under Section 69 of the CGST Act, 2017 for committing offences under Section 132(1)(c) read with Section 132(5) of CGST Act, 2017. He was produced before Additional CMM court, Mumbai on February 12, 2022 and has been sent to judicial custody for 14 days.

This case is a part of the Anti-Evasion drive launched by CGST, Mumbai Zone against tax evaders. As a part of this drive, CGST Mumbai South Commissionerate has detected tax evasion of more than Rs. 570 Crores, recovered Rs. 7 Crores and arrested 8 persons during the last six months.

The CGST department is using data analytics and network analysis tools to identify potential tax evaders and also coordinating with other tax authorities for nabbing tax evaders. The department plans to intensify this anti-evasion drive in the coming days and months.

The Press Release can be accessed at - https://www.pib.gov.in/PressReleasePage.aspx?PRID=1797944