Credit fraud

GST agents uncover rupee 34 crore input tax credit fraud

NEW DELHI: GST agents have uncovered a rupee 34 crore input tax credit fraud involving seven companies, the finance ministry said on Sunday.
The seven companies were created to generate fake GST invoices, with the intention of transferring a fraudulent Input Tax Credit (ITC) without actual movement of the goods and without paying the Goods and Services Tax (GST) to the government.
“Based on specific intelligence, officers from the anti-avoidance branch of the Central Goods and Services Tax Commission (CGST), Delhi (East), uncovered a use / use case and transmission of an ineligible input tax credit (ITC) via a bogus GST. invoices with no actual movement of goods of Rs 34 crore (approximately), ”the ministry said in a statement.
These entities generated false GST invoices worth Rs.220 crore (approx) and spent ineligible ITCs amounting to Rs. 34 crore (approx).
“Rishabh Jain was the mastermind behind this racketeering of creating bogus businesses and generating / selling bogus GST invoices,” the statement added.
The modus operandi involved the creation of several companies with the intention of operating / using and transferring ineligible credits. The companies involved in this network are M / s Blue Ocean, M / s Highjack Marketing, M / s Kannha Enterprises, M / s SS Traders, M / s Evernest Enterprises, M / s Gyan Overseas and M / s Viharsh Exporters Pvt Ltd .
Jain was arrested on November 13 and remanded in custody by the Metropolitan Magistrate on Duty until November 26, 2021.