Central Goods and Services Tax (CGST) Delhi East Commissionerate officials busted a syndicate of seven firms involved in more than Rs 85 crore in GST evasion. Initially, five firms were identified as obtaining and utilising fake Goods and Services Tax Input Tax Credit (ITC) (GST).
“During investigation it was learnt that the syndicate was using two more entities namely, Shree Mahaveer International and Gravity Enterprises,” said an official on Friday.
A car registered in the name of one of the syndicate firms, Blue Water Expotrade Private Limited, was intercepted by them in Ahmedabad, according to a communication from GST, Gujarat.
“FastTags of trucks were affixed on the car to create false movement of export goods from Delhi to Mundra port. The E-way bills in respect of the fake supply were issued by Shree Mahaveer International,” said the official.
On March 10, the GST officials conducted search at the residential premises of Rakesh Kumar Jain, proprietor in Shree Mahaveer International and Partner in Gravity Enterprises.
In his voluntary statement, Jain admitted that bogus invoices were received and issued from these syndicate firms without actual supply of goods.
Jain was clearly using multiple firms to obtain and pass on fake ITC on bogus invoices and EWay Bills without actual supply of goods. He evaded more than Rs 85 crore in GST.
“Therefore, he was arrested on March 10 for committing offences specified under Section 132(1)(b)&(c) of the CGST Act, 2017 and produced before Metropolitan Magistrate Patiala House Courts, New Delhi,” he said.
So far, the investigation has unearthed a fake ITC racket managed by seven companies: Vibe Tradex, Prime Mark Expotrade Private Limited, Blue Water Expotrade India Private Limited, Transglobe Tradex Private Limited, Tirupati Overseas, Shree Mahaveer International, and Gravity Enterprises.
The case is currently under investigation .