On Thursday, CGST officials arrested a man and dismantled a syndicate of companies that engaged in the sale and use of false Goods and Services Tax (GST) input tax credits (ITCs). ). Through extensive analysis of E-way invoices, CGST Delhi East Commissionerate officials discovered that this syndicate was using two other entities namely M/s Shree Mahaveer International and M/s Gravity Enterprises. A communication was also received from GST, State of Gujarat that a car, registered to one of the syndicate companies M/s Blue Water Expotrade Private Limited, was intercepted by them in Ahmedabad.
According to the Ministry of Finance, truck FastTags were affixed to the car to create a fake movement of export goods from Delhi to Mundra Port. E-way invoices regarding the false supply were issued by M/s Shree Mahaveer International. A search was carried out on Thursday at the residential premises of Rakesh Kumar Jain, owner of M/s Shree Mahaveer International and partner of M/s Gravity Enterprises.
Jain admitted that false invoices were received and issued by these syndicate companies without actual supply of goods. It was evident that Jain was using several companies to profit and pass fake ITC on fake invoices and E-Way invoices without actual supply of goods. The amount of GST evaded by him is more than Rs 85 crore, the finance ministry said.
Jain was arrested on Thursday for committing offenses under the CGST Act and arraigned before the Metropolitan Magistrate Patiala House Courts, New Delhi. So far, investigation by CGST Delhi (East) Commissariat has unearthed fake ITC racketeering from seven companies namely M/s Vibe Tradex, M/s Prime Mark Expotrade Private Limited, M/s s Blue Water Expotrade India Private Limited, M/s Transglobe Tradex Private Limited, M/s Tirupati Overseas, M/s Shree Mahaveer International and M/s Gravity Enterprises.
Further investigation is underway. (ANI)
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