GST officials unearthed a case of input tax credit fraud worth Rs 34 crore involving seven firms based on specific intelligence input.
The 7 firms were created in order to generate bogus GST invoices with an intent to pass on fraudulent inadmissible input tax credit (ITC) without actual movement of goods and without paying actual GST to the Government. These entities have generated goods less GST invoices of value approximately Rs 220 crore and passed inadmissible ITC amounting to Rs 34 crore.
Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have unearthed a case of utilization and passing on of ITC through bogus GST invoices without actual movement of goods of approximately Rs 34 crore, said Finance Ministry in a statement.
One Rishabh Jain was the mastermind behind running this racket of creating bogus firms and generating, selling bogus GST invoices. The modus operandi involved creating multiple firms with the intent to avail and passing on of inadmissible credit.
The firms involved in this network are Blue Ocean, Highjack Marketing, Kannha Enterprises, S S Traders, Evernest Enterprises, Gyan Overseas & Viharsh Exporters Pvt. Ltd. Jain tendered his voluntary statement admitting his guilt. He admitted that due to non-payment against overdraft account of the Central Bank of India, the business premises were sealed by bankers. Thereafter, he indulged in issuance of bogus GST invoices without actual movement of goods.
Jain has knowingly committed offences under Section 132(1)(b) of the CGST Act, 2017 which is cognizable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the subsection (1) of Section 132 of the Act ibid. Accordingly, Sh. Rishabh Jain has been arrested under Section 132 of the CGST Act on 13.11.2021 and remanded to judicial custody by the duty Metropolitan Magistrate till November 11, 2021.
