CGST Delhi officials bust a syndicate of seven firms in GST evasion of more than Rs 85 crore

New Delhi, March 12, 2022

The Central Goods and Service Tax (CGST) Delhi East Commissionerate has busted a syndicate of five firms who were allegedly engaged in availing and utilising fake Input Tax Credit (ITC) of GST.

The racket was uncovered through extensive analysis of E-way bills, an official press release said.

During further investigation, it was found that this syndicate was using two more entities -- Shree Mahaveer International and Gravity Enterprises.

A communication was also received from GST, Gujarat State that a car bearing registration number DL 8C AS 5941, registered in the name of one of the syndicate firms, 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, an official press release said.

A search was conducted at the residential premises of Rakesh Kumar Jain, proprietor of Shree Mahaveer International and partner in Gravity Enterprises on March 10.

According to the release, 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.

"Therefore, he was arrested on 10th March 2022 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," it said.

"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 in the case is under progress," the release added.

NNN