India, Feb. 13 -- The officers of the Thane Central Goods and Service Tax (CGST) Commissionerate, under the CGST Mumbai Zone, busted a fake GST invoice racket involving fraudulent transactions worth Rs.140 crore on Tuesday. The operation was designed to avail fraudulent Input Tax Credit (ITC) amounting to Rs.26.92 crore.

Following an investigation, Mahamad Sultan Kapadiya, a Mira Road East resident, was identified as the mastermind behind the racket, CGST said in a release issued on Wednesday. He allegedly created a network of fake firms to generate fraudulent invoices and illegally pass on ITC without supplying goods or services.

The investigation revealed that he created and managed 18 dummy entities to facilitate proxy and dummy tran...