Home / Crime and Justice / Kolhapur CGST Nabs Fake ITC Kingpin
Kolhapur CGST Nabs Fake ITC Kingpin
6 Jul
Summary
- Mastermind arrested in Rs 10.6 crore fake input tax credit fraud.
- Network of shell firms allegedly used to generate fraudulent GST credits.
- Alleged mastermind remanded to 11 days of judicial custody.
In a significant enforcement action, the Central GST Commissionerate in Kolhapur has apprehended Kalpesh Kumbhar, a 40-year-old individual accused of masterminding a substantial fake input tax credit (ITC) fraud. This marks the first arrest by the commissionerate in a GST evasion case, involving an alleged Rs 10.6 crore fraud.
Investigations revealed that Kumbhar purportedly utilized a network of at least six shell companies, floated using identities of relatives and associates. These entities allegedly issued fake GST invoices without actual supply of goods or services, thereby fraudulently passing on ITC worth Rs 10.6 crore. A portion of this credit was purportedly used to offset liabilities, while the remainder was passed on to other recipients.
Documentary evidence and recorded statements confirmed that no genuine business transactions took place. The alleged offenses fall under serious sections of the CGST Act, constituting a cognizable and non-bailable offense due to the amount involved exceeding Rs 5 crore. Kumbhar has been remanded to 11 days of judicial custody, and further inquiries are underway to uncover all conspirators and beneficiaries.
