The Mumbai Goods and Services Tax (GST) Commissionerate has lodged a police complaint against a bogus trader who allegedly floated a fake company to fraudulently avail IGST refunds. The accused identified as Santosh Bhuwad is alleged to have registered his bogus company on the GSTN portal by submitting fake documents and acquiring the GST registration number. Another accomplice Jabbar Malik and other few men are also under the radar of the officers for cheating the revenue department to the tune of Rs 5 lakhs under the name of getting IGST refunds by flouting the prescribed rules. According to the RAK Marg police where the FIR has been taken, the complainant in the case is an assistant commissioner from the investigation unit of GST Bhavan in Mazgaon. The investigation unit which supervises any violation of rules under the CGST Act ensured that there is proper GST payment from the registered traders and no fraud takes place which breaches the law under the Maharashtra Value Added Tax Act and Central Sales Tax Act.
Bhuwad who had registered his company named Santosh Enterprises in December 2018 had stated that his firm deals in sales and export of tricycles and scooters and during registration, he submitted the business property consent letter, electricity bills, Aadhar card, bank account details and PAN card then received the registration number GSTIN- 27AMVPB3837H1ZR on his mail id. When the officers found something fishy, an authorization letter was issued by the deputy commissioner in April 2019 after which a team reached out to Sewri to conduct surprise inspection, search and seizures at Bhuwad’s office. The address given by Bhuwad as his place of occupation was demolished for redevelopment and he later went missing. When the officers investigated the matter further, they discovered that the property consent letter submitted during registration was forged and the person who gave his signatures never existed.
“Bhuwad, when found, was working with a food delivery portal and he confessed that his friend Malik offered him money instead of his electricity bills, PAN and Aadhar card. Later the fake firms bank account was scrutinised along with the KYC form, account opening form, GST registration form and transactions statements and it was further discovered that total amount worth Rs 5,69, 949 which was refunded was misappropriated by the accused men and the amount was later transferred to different bank accounts,” said a police officer. A source from the GST Bhavan told DNA that in order to avail the benefits of the refund money, the accused forged and faked documents to submit them for registration. So far the cops have booked Bhuwad under section 120B, 409, 420, 468 and 471 of the Indian Penal Code and other relevant section of the CGST Act.