Firm busted for availing benefit from bogus invoices in Delhi

Acting on a tip of specific intelligence as well as further data mining/analysis on GSTN and E way bill portals, the officers of Central Goods and Services Tax (CGST) Delhi South Commissionerate, have busted a syndicate of firms involved in availing invoices.

New Delhi:The officers of Central Goods and Services Tax (CGST) Delhi South Commissionerate, have busted a firm involved in availing benefits from bogus invoices.

"On the basis of specific intelligence as well as further data mining/analysis on GSTN and E way bill portals, the officers of Central Goods and Services Tax (CGST) Delhi South Commissionerate, have busted a syndicate of firms involved in availing invoices and E-way bills issued on the GSTIN of fake or dummy firms and getting Refund of IGST on the strength of such fake Invoices," read a press statement from the Ministry of Finance on Thursday.

A case was booked against M/s Baan Ganga Impex having their Principal Place of Business at L-10A, Ganga Tower, Mahipalpur, New Delhi according to the statement.

From preliminary scrutiny of the seized documents, the data or information available on the E-way Portal or GSTN portal, it is found that M/s Baan Ganga Impex, New Delhi has availed Invoices from non-existing 48 entities creating a web of suppliers among themselves and passing on ITC to each other, the statement read.

It said, finally, the ITC from all the suppliers is passed on to M/s Baan Ganga Impex which in turn avails a refund on the strength of export of goods procured from the unregistered suppliers.

The nexus has used fabricated vehicle numbers to generate e-way bills which were found to be of two-wheelers, buses, JCB, private cars and Ambulance, etc.

"In total M/s Baan Ganga Impex has availed the invoices from the fake entities amounting to Rs 685 crore (approximately) involving GST of Rs 50 crore (approximately) and succeeded to get a refund of Rs 35 crores (approximately)," it said.

According to the statement, Rakesh Sharma, Partner of M/s Baan Ganga Impex being the main beneficiary of the said nexus and dealing with all operational activities of the firm, has been arrested on November 9, 2020, and was produced before the Metropolitan Magistrate, Saket Courts on November 09, 2020, after the medical examination and COVID test. Rakesh Sharma has been sent to judicial custody for 14 days by the Metropolitan Magistrate.

Further investigations are in progress.

ANI Report