GST evasion syndicate busted in Delhi

GST evasion syndicate busted in Delhi

GST evasion syndicate busted in Delhi

Tax evasion of over Rs. 85 crores detected

New Delhi, March 11 (Delhi Crown): The CGST Delhi East Commissionerate on Friday claimed to have busted a syndicate of five firms engaged in availing and utilising fake Input Tax Credit (ITC) of Goods and Services Tax (GST).

It was found that this syndicate was using two more entities, namely M/s Shree Mahaveer International and M/s Gravity Enterprises.

A 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 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.

Search was conducted at residential premises of Rakesh Kumar Jain, proprietor in M/s Shree Mahaveer International and Partner in M/s Gravity Enterprises on Thursday (March 10).

Rakesh Kumar Jain in his voluntary statement admitted that bogus invoices were received and issued from these syndicate firms without actual supply of goods.

It was evident that Rakesh Kumar 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.

Subsequently he was arrested for committing offences specified under Section 132(1)(b)&(c) of the CGST Act, 2017 and produced before Metropolitan Magistrate Patiala House Courts, New Delhi.

Investigation by CGST Delhi (East) Commissionerate so far has unearthed fake ITC racket by seven firms namely, M/s Vibe Tradex, M/s Prime Mark Expotrade Private Limited, M/s Blue Water Expotrade India Private Limited, M/s Transglobe Tradex Private Limited, M/s Tirupati Overseas, M/s Shree Mahaveer International & M/s Gravity Enterprises.

Further investigation is under progress in the case.

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