Delhi: CGST officials bust syndicate of firms in GST evasion
Mar 11, 2022
New Delhi [India], March 11 : CGST officials on Thursday arrested a man and busted a syndicate of firms who were engaged in avaialing and utilising fake Input Tax Credit (ITC) of Goods and Services Tax (GST).
Through extensive analysis of E-way bills, CGST Delhi East Commissionerate officials found that this syndicate was using two more entities namely, M/s Shree Mahaveer International and M/s Gravity Enterprises. Communication was also received from GST, Gujarat State that a car, registered in the name of one of the syndicate firms M/s Blue Water Expotrade Private Limited was intercepted by them in Ahmedabad.
According to the Ministry of Finance, FastTags of Trucks were affixed on the car to create a false movement of export goods from Delhi to Mundra port. The E-way bills in respect of the fake supply were issued by M/s Shree Mahaveer International.
A search was conducted at the residential premises of Rakesh Kumar Jain, proprietor in M/s Shree Mahaveer International and Partner in M/s Gravity Enterprises on Thursday.
Jain admitted that bogus invoices were received and issued from these syndicate firms without actual supply of goods.
It was evident that Jain was using multiple firms to avail and pass on fake ITC on bogus invoices and E-Way bills without actual supply of goods. The quantum of GST evaded by him is more than Rs 85 crore, said the Finance Ministry.
Jain was arrested on Thursday for committing offences under the CGST Act and produced before Metropolitan Magistrate Patiala House Courts, New Delhi.
Investigation by CGST Delhi (East) Commissionerate so far has unearthed fake ITC racket by seven firms namely, M/s Vibe Tradex, M/s Prime Mark Expotrade Private Limited, M/s Blue Water Expotrade India Private Limited, M/s Transglobe Tradex Private Limited, M/s Tirupati Overseas, M/s Shree Mahaveer International and M/s Gravity Enterprises.
Further investigation is underway.
