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

New Delhi: CGST Delhi East Commissionerate officials have busted a syndicate of seven firms which were engaged in GST evasion of more than Rs 85 crore.
Initially, five firms were detected which were availing and utilising fake Input Tax Credit (ITC) of Goods and Services Tax (GST).
“During investigation it was learnt that the syndicate was using two more entities namely, Shree Mahaveer International and Gravity Enterprises,” said an official .
A 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.
“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 Shree Mahaveer International,” said the official.
On March 10, the GST officials conducted search at the residential premises of Rakesh Kumar Jain, proprietor in Shree Mahaveer International and Partner in Gravity Enterprises.
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 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.
“Therefore, he was arrested on March 10 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,” he said.
Investigation, so far, has unearthed fake ITC racket by seven firms namely — Vibe T
radex, Prime Mark Expotrade Private Limited, Blue Water Expotrade India Private Limited, Transglobe Tradex Private Limited, Tirupati Overseas, Shree Mahaveer International and Gravity Enterprises.
Further investigation in the case is under progress.