New Delhi: Inadmissible Input Tax Credit (ITC) utilization and passing through goods fewer invoices of Rs 91 crore (Approx.), based on the specific intelligence, has been discussed between the officers of the Anti-Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (West)
The modus operandi involved floating of multiple firms with the intent to avail/utilize & passing on of inadmissible credit.
There are 23 firms involved in this network, such as M/s Girdhar Enterprises, M/s Arun Sales, M/s Akshay Traders, M/s Shree Padmavati Enterprises, and 19 others, were floated to generate goods-less invoices with an intent to pass on fraudulent ITC without paying actual GST to the government. Late Shri Dinesh Gupta, Shri Shubham Gupta, Shri Vinod Jain, and Shri Yogesh Goel were associated in the said business of generating/selling fake invoices, also dealing in various commodities, generation of goods-less invoices worth Rs. 551 crore and passing inadmissible ITC amounting to Rs. 91crore(approx.).
After admitting their guilt, Shri Shubham Gupta, Shri Vinod Jain, and Shri Yogesh Goel knowingly committed offenses under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable offenses as per the provisions of Section 132(5) and are punishable under clause (i) of the subsection (1) of Section 132 of the Act ibid. Accordingly, they were arrested under Section 132 of the CGST Act on 10.07.2021 and remanded to judicial custody by the duty Metropolitan Magistrate for 14 days. Further investigations are in progress.
Delhi Zone has been making sustained efforts to check evasion of GST, leading to detection of Rs. 91.256 crore in the present FY and 3 persons have been arrested in these matters.