GST Evasion: CGST Delhi East busts Firms utilizing Fraudulent ITC worth Rs. 24 cr

Central GST Commissionerate has busted an operation involving availing of fraudulent Input Tax Credit on the basis of fake invoices and evasion of GST by utilizing the said fraudulent ITC to the tune of Rs. 24 crores approx. by M/s Shub Conductors LLP. A search was conducted on the premise and it was found that among other firms, M/s Een Een Sales Corporation and M/s A.N. Marketing had passed on fake ITC to M/s Shub Conductors. During investigation, Shri Naresh Goel and Shri Anil Kumar Yadav, proprietors of M/s Een Een Sales Corporation and M/s A.N. Marketing respectively have agreed passing of input tax credit fraudulently. It was also revealed that at least 7 firms were floated in the names of fictitious entities for the sole purpose of creating a complex network of transactions among themselves. Shri Vishal Gupta was arrested on 17.03.2020 under Section 69(1) of the CGST Act, 2017 and remanded to judicial custody by the Duty Metropolitan Magistrate (MM) till 31.03.2020.

https://www.taxscan.in/gst-evasion-cgst-delhi-east-busts-firms-utilizing-fraudulent-itc-worth-rs-24-cr/53013/