One held for illegally availing input tax credit on invoices without goods

New Delhi [India], December 8 : The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested a person for allegedly illegally availing input tax credit on invoices without goods.
The accused has been identified as Rajesh Kasera, a resident of New Delhi. He was arrested on charges of Integrated Goods and Services Tax (IGST) fraud by way of illegally availing input tax credit (ITC) on invoices without goods, and encashing through IGST refund mode by resorting to overvalued exports.
The Ministry of Finance said in a release that it is apparent from the investigation conducted till date, that Kasera created and controlled two companies by the name of SK Traders helmed by dummy director Sushil Kumar Goyal and another by the name of RK Enterprises, based in New Delhi and Faridabad respectively.
"SK Traders had availed/passed on fraudulent ITC of Rs 3.47 crores to on invoices without accompanying goods. Further, RK Enterprises had passed/availed fraudulent ITC of Rs 5.25 crores on invoices without accompanying goods," the Ministry stated.
The investigation spanned multiple locations in Delhi, NCR area and based on documentary evidence and statements recorded, it was ascertained that Rajesh Kasera was the de facto controller of SK Traders and proprietor of RK Enterprises. Both these entities indulged in the act of the wrong availment /passing on of input tax credit of Rs 8.72 crore.
Accordingly, Kasera was arrested on December 7 and produced before Duty MM Delhi, who ordered judicial custody. A total fake ITC of more than 8.72 crores has been thus passed/availed by the accused which was subsequently used for wrongly availing IGST refund.
Further investigation into the matter is underway, the Ministry stated.