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Home / News / India /  GST officials bust 23 firms in input tax credit fraud worth 91 crore

GST officials have busted a network of 23 firms involved in passing on of inadmissible input tax credit (ITC) through goods-less invoices of approximately 91 crore. Their modus operandi involved floating of multiple firms with the intent to avail or utilise and pass on inadmissible credit.

The officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (West) unearthed a case based upon specific intelligence, informed Ministry of Finance on Sunday.

The firms involved in this network are M/s Girdhar Enterprises, M/s Arun Sales, M/s Akshay Traders, M/s Shree Padmavati Enterprises and 19 others. These 23 firms were floated in order to generate goods-less invoices with an intent to pass on fraudulent ITC without paying actual GST to the government.

"Late Dinesh Gupta, Shubham Gupta, Vinod Jain and Yogesh Goel were associated in the said business of generating/selling fake invoices. These entities are dealing in various commodities and involved in generation of goods-less invoices worth 551 crore and passing inadmissible ITC amounting to 91 crore (approx.)," the Finance Ministry statement read.

All the three accused have tendered their voluntary statement admitting their guilt, the ministry further added.

"Therefore, Shubham Gupta, Vinod Jain and Yogesh Goel knowingly committed offences under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid. Accordingly, they were arrested under Section 132 of the CGST Act on July 10, 2021 and remanded to judicial custody by the duty Metropolitan Magistrate for 14 days," it said.

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