CGST officials bust syndicate of firms involved in tax evasion of Rs.85 crore

The investigating team had initially detected five firms that were availing and utilising fake Input Tax Credit of Goods and Services Tax

PGurus Newsdesk

March 12, 2022

The investigating team had initially detected five firms that were availing and utilising fake Input Tax Credit of Goods and Services Tax

Fake GST Input Tax Credit (ITC) racket busted by CGST Delhi officials

In a major crackdown on GST evasions, the CGST Delhi East Commissionerate officials have busted a syndicate of seven firms that were engaged in more than Rs.85 crore of evasions.

The investigating team had initially detected five firms that were availing and utilizing fake Input Tax Credit (ITC) of Goods and Services Tax (GST). Further investigation has unearthed fake ITC racket by seven firms namely — Vibe Tradex, Prime Mark Expotrade Private Limited, Blue Water Expotrade India Private Limited, Transglobe Tradex Private Limited, Tirupati Overseas, Shree Mahaveer International and Gravity Enterprises.

An official said, “During further investigation, it was found that this syndicate was using two more entities namely, M/s Shree Mahaveer International and M/s Gravity Enterprises. Communication was also received from GST, Gujarat State that a car bearing registration no. DL8CAS5941, registered in the name of one of the syndicate firm M/s Blue Water Expotrade Private Limited was intercepted by them in Ahmedabad. FastTags of Trucks were affixed on the car to create a false movement of export goods from Delhi to Mundra port. The E-way bills in respect of the fake supply were issued by M/s Shree Mahaveer International.”

It was evident that 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. The GST officials conducted a search at the residential premises of Rakesh Kumar Jain, proprietor in Shree Mahaveer International and Partner in Gravity Enterprises on the 10th of March.

Communication was also received from GST, Gujarat that a car registered in the name of one of the syndicate firm Blue Water Expotrade Private Limited was intercepted by them in Ahmedabad.

[With Inputs from IANS]

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