• Notification Date: 15-11-2021
  • Notification No: 33/2021-22

GST officers discover Rs 34 crore input tax credit fraud

GST officials have unearthed Rs 34 crore input tax credit fraud, involving seven firms, the Finance Ministry said on Sunday.

The seven firms were created to generate fraudulent GST invoices, with the intent to pass on misleading ITC without actual movement of goods and without paying goods and Services Tax (GST) to the government.

“Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have unearthed a case of availing/utilising and passing on of inadmissible input tax credit (ITC) through bogus GST invoices without actual movement of goods of Rs 34 crore (approx),” the ministry said in a statement.

These entities have generated false GST invoices of value amounting to Rs 220 crore (approx) and passed inadmissible ITC amounting to Rs. 34 crore (approx).

“Rishabh Jain was the mastermind behind running this racket of creating bogus firms and generating/selling bogus GST invoices,” the statement added.

The same method involved creating multiple firms with the intent to avail and utilise and passing of inadmissible credit. The firms involved in this racket are M/s Blue Ocean, M/s Highjack Marketing, M/s Kannha Enterprises, M/s S S Traders, M/s Evernest Enterprises, M/s Gyan Overseas and M/s Viharsh Exporters Pvt Ltd.

Jain was arrested on November 13 and remanded to judicial custody by the duty Metropolitan Magistrate till November 26, 2021.