Credit fraud

GST officers uncover Rs 34 crore input tax credit fraud

The seven companies were created to generate bogus GST invoices, with the intention of transmitting fraudulent ITCs without actual movement of goods and without paying GST.

GST officers have uncovered Rs 34 crore input tax credit fraud involving seven companies, the Ministry of Finance announced on Sunday.

The seven companies were set up to generate bogus GST invoices, with the intent of transmitting fraudulent ITCs without actual movement of goods and without paying Goods and Services Tax (GST) to the government.

“Based on specific intelligence, officers from the Anti-Avoidance Branch, Central Commissariat of Goods and Services Tax (CGST), Delhi (East) have unearthed a case of use/use and transmission of impermissible Input Tax Credit (ITC) through bogus GST invoices without actual movement of goods of Rs 34 crore (approx),” the ministry said in a statement.

These entities generated bogus GST invoices worth Rs 220 crore (approx) and passed inadmissible ITC amounting to Rs. 34 crore (approx).

“Rishabh Jain was the mastermind behind running this racket of creating fake businesses and generating/selling fake GST bills,” the statement added.

The modus operandi involved the creation of multiple businesses for the purpose of profiting/using and passing on 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 taken into custody by the Metropolitan Magistrate on Duty until November 26, 2021.

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