Credit fraud

GST officials destroy 23 businesses in input tax credit fraud worth 91 crore

GST officials dismantled a network of 23 companies involved in transferring ineligible input tax credits (ITCs) through merchandise-less invoices of about ??91 crores. Their modus operandi involved floating several companies with the intention of availing themselves or using and passing on ineligible credit.

Agents from the anti-avoidance branch of the Central Goods and Services Tax Commission (CGST) in West Delhi have uncovered a case based on specific intelligence, the finance ministry said on Sunday.

The companies involved in this network are M / s Girdhar Enterprises, M / s Arun Sales, M / s Akshay Traders, M / s Shree Padmavati Enterprises and 19 others. These 23 companies were started to generate invoices without goods with the intention of transmitting fraudulent ITCs without paying the actual GST to the government.

“Late Dinesh Gupta, Shubham Gupta, Vinod Jain and Yogesh Goel were associated with said activity of generating / selling false invoices. These entities deal with various commodities and are involved in generating invoices without goods of value ??551 crore and passing an ineligible ITC amounting to ??91 crore (approximately), “the statement from the Ministry of Finance read.

The three defendants filed their voluntary declarations admitting their guilt, the ministry added.

“Therefore, Shubham Gupta, Vinod Jain and Yogesh Goel knowingly committed offenses under section 132 (1) (b) and 132 (1) (c) of the CGST Act of 2017, which are knowable offenses and not subject to a bond in accordance with the provisions of Article 132 (5) and are punishable under clause (i) of paragraph (1) of Article 132 of the ibid law. As a result, they were arrested under article 132 of the CGST law on July 10, 2021 and remanded in custody. by the metropolitan magistrate on duty for 14 days, ”he declared.

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