Published On : Sat, Aug 6th, 2022

Tax evasion: Nagpur trader arrested for Rs 10.35 crore GST fraud

Nagpur: The Maharashtra Goods & Service Tax Department (GST) arrested a Nagpur-based trader Dhananjay Ghadge for fabricating a network of non-genuine taxpayer entities and claiming bogus Input Tax Credit (ITC) and passing on the same by issuing fake invoices amounting to more than Rs 58 crore, according to a report in local media.

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According to the report, while analyzing the newly registered taxpayer by comprehensive analytic tools of Maharashtra GST Department and information available on GST Portal, the investigators found that Ghadge had created a web of bogus firms. The irregularity surfaced while the department was investigating a matter related to M/s Premium International. During the investigation, it was noticed that a network of non-genuine taxpayer entities was created and fraudulent ITC was availed through them and subsequently passed on by issuing fake invoices.

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The report further said that the trader Dhananjay Ghadge was found actively involved in fabricating such a fake network by obtaining eight bogus GST registrations and also establishing his own bogus proprietary firm in the name of M/s Ghadge Traders. He was found to have claimed, utilized and passed on fake credit at Rs 10.35 crore by issuing fake invoices. The Judicial Magistrate First Class (JMFC) on Friday sent the accused to Judicial Custody for 14 days.

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An arrest order was also issued against Mohammad Salim Khan, Proprietor of M/s Premium International in the same matter. The officers of the department are using data analysis and network analysis tools to identify potential fraudsters. This investigation was conducted under the supervision of Ananta J Rakh, Additional Commissioner of State Tax, Nagpur Zone; Sanjay Kandhare, Joint Commissioner of State Tax, Nagpur; and Vilas B Padvi, Deputy Commissioner of State Tax – Investigation; by Sachin R Dhodre, Assistant Commissioner of StateTax with the help of Assistant Commissioner of State Tax – Dipak Shirgurwar and Santosh Hemane and team of State Tax Inspectors of Investigation Branch Nagpur.

The department is taking every possible effort for tracing out defaulter dealers who are making fraud transactions, circular transactions, and issuing fake invoices to avail input tax credit. In the current fiscal, the Maharashtra Goods and Services Tax Department has arrested 31 tax evaders, thereby, giving a strong signal to the tax evaders that the department will take harsh and stringent actions against such taxpayers in future.

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