• Notification Date: 12-03-2022
• Notification No: N/A

Syndicate Arrested by CGST Officials for Tax Evasion

A syndicate of firms has been arrested by the CGST officials on Thursday. He has been accused of tax evasion by availing and utilizing fake input tax credit (ITC) of Goods and Services Tax (GST).

CGST Delhi East Commisionerate Officials have detected that the accused syndicate has been using two other fake entities for availing of the ITC benefits. After conducting extensive E-bills analysis, the CGST officials discovered the other two fake entities of the syndicate, namely, M/s Shree Mahaveer International and M/s Gravity Enterprises. The GST officials of Gujarat State also reported that a car has been found in the name of one of the syndicate firms called M/s Blue Water Expotrade Private Limited. The officials intercepted the car in Ahmedabad.

According to the statement of the Ministry of Fin ace, there were several FastTags of Trucks attached to the car. This was done with the intention of creating a false impression of the movement of export goods from Delhi to Mundra port. The E-ways Bills were issued by M/s Shree Mahaveer International for the fake supply.

The CGST officials conducted a raid in the residential premises of the accused syndicate, Rakesh Kumar Jain, on Thursday. Jain is the proprietor of M/s Shree Mahaveer International and he is a partner in M/s Gravity Enterprises. He admitted to the accusations of receiving fake invoices and issuing of the same from the syndicate firms without any supply of goods or services.

He has been using several fake firms to receive and pass fake ITC benefits. He was receiving as well as issuing fake invoices. According to the Finance Ministry, Jain has evaded tax worth Rs. 85 crores.

Finally, Jain has been arrested by the CGST officials on Thursday under the CGST Act for the offences that he has committed. He has been produced before Metropolitan Magistrate Patiala House Courts in New Delhi.