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Updated on: Monday, November 15, 2021, 10:14 AM IST

CGST officials unearth Rs 34 cr ITC fraud involving 7 firms; probe in process

Rishabh Jain has knowingly committed offences which is cognisable and non-bailable offences according to CGST Commissionerate |

Rishabh Jain has knowingly committed offences which is cognisable and non-bailable offences according to CGST Commissionerate |

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Based upon specific intelligence, officers of the Anti Evasion Branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have unearthed a case of availment/utilisation and passing on of inadmissible input tax credit (ITC), through bogus GST invoices without actual movement of goods, of about Rs 34 crore.

Seven firms were created in order to generate bogus GST invoices with intent to pass on fraudulent ITC without actual movement of goods and without paying actual GST to the government. These entities have generated goods-less GST invoices of value about Rs 220 crore and passed inadmissible ITC amounting to around Rs 34 crore.

Rishabh Jain was the mastermind behind running this racket of creating bogus firms and generating/selling bogus GST invoices, the department said.

The modus operandi involved creating multiple firms with the intent to avail/utilise and pass on inadmissible credit. The firms involved in this network are Blue Ocean, Highjack Marketing, Kannha Enterprises, SS Traders, Evernest Enterprises, Gyan Overseas, and Viharsh Exporters Pvt Ltd.

Jain tendered his voluntary statement admitting his guilt. He admitted that due to non-payment against overdraft account of the Central Bank of India, the business premises were sealed by bankers. Thereafter, he indulged into issuance of bogus GST invoices without actual movement of goods.

Jain has knowingly committed offences under Section 132(1)(b) of the CGST Act, 2017 which is cognisable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid. Accordingly, Jain has been arrested under Section 132 of the CGST Act on November 13 and sent to judicial custody by the duty Metropolitan Magistrate till November 26, the department said.

Further investigations are in progress, it added.

(With inputs from IANS)

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Published on: Monday, November 15, 2021, 10:14 AM IST
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