One person has been arrested in a Rs 85-crore GST invasion case involving seven firms in Delhi. The arrest took place during a raid after the CGST Delhi (East) Commissionerate unearthed fake Input Tax Credit (ITC) racket by the seven firms in Delhi, official sources said.
The seven firms, which were engaged in availing and utilising fake ITC of Goods and Services Tax (GST) included Vibe Tradex, Prime Mark Expotrade Private Limited, Blue Water Expotrade India Private Limited, Transglobe Tradex Private Limited, Tirupati Overseas, and Shree Mahaveer International & Gravity Enterprises, the release stated.
A release by the Union Finance Ministry stated that one Rakesh Kumar Jain was arrested on March 10, 2022 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.
Earlier, the CGST Delhi East Commissionerate busted a syndicate of five firms who were engaged in availing and utilising fake Input Tax Credit (ITC) of Goods and Services Tax (GST). During further investigation, it was found that this syndicate was using two more entities namely, Shree Mahaveer International and Gravity Enterprises.
A communication was also received from GST, Gujarat that a car bearing registration No DL8CAS5941, registered in the name of one of the syndicate firm Blue Water Expotrade Private Limited was intercepted by them in Ahmedabad. 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.
Search was conducted at residential premises of Rakesh Kumar Jain, proprietor in Shree Mahaveer International and Partner in Gravity Enterprises on March 10, 2022. Rakesh Kumar Jain in his voluntary statement admitted that bogus invoices were received and issued from these syndicate firms without actual supply of goods, a PIB release stated.
It was evident that Rakesh Kumar 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. Further investigation in the case is under progress.
