Credit fraud

CGST officials discover Rs 34 cr input tax credit fraud involving 7 companies


New Delhi, November 14 (SocialNews.XYZ) Based on specific intelligence, officers from the Anti-Avoidance Branch of the Central Goods and Services Tax Commission (CGST), Delhi (East), discovered a use / use case and transmission of an ineligible input tax credit (ITC), via false GST invoices. with no actual movement of goods, around Rs 34 crore.

Seven companies were created to generate false GST invoices with the intention of transmitting fraudulent ITCs without actual movement of goods and without paying actual GST to the government. These entities generated GST invoices without goods worth around Rs 220 crore and spent an ineligible ITC amounting to around Rs 34 crore.

Rishabh Jain was the mastermind behind this racketeering of setting up bogus businesses and generating / selling bogus GST invoices, the department said.

The modus operandi involved the creation of several companies with the intention of exploiting / using and passing on ineligible credits. The companies involved in this network are Blue Ocean, Highjack Marketing, Kannha Enterprises, SS Traders, Evernest Enterprises, Gyan Overseas and Viharsh Exporters Pvt Ltd.

Jain handed in his voluntary declaration admitting his guilt. He admitted that due to the non-payment of the overdraft account of the Central Bank of India, the business premises were sealed by bankers. Subsequently, he engaged in the issuance of false GST invoices with no actual movement of the goods.

Jain knowingly committed offenses under Section 132 (1) (b) of the CGST Act of 2017, which are known and non-bondable offenses in accordance with the provisions of Article 132 (5) and are punishable under paragraph (i) of sub-article (1) of article 132 of the ibid law. As a result, Jain was arrested under section 132 of the CGST Act on Nov. 13 and sent into judicial custody by the Metropolitan Duty Magistrate on duty until Nov. 26, the department said.

Other investigations are underway, he added.

Source: IANS

CGST officials discover Rs 34 cr input tax credit fraud involving 7 companies

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