On the basis of specific intelligence as well as further data mining on GSTN and E way bill portals, the officers of CGST Delhi South Commissionerate, have busted a syndicate of firms involved in availing invoices and E-way bills issued on the GSTIN of dummy firms and getting Refund of IGST on the strength of such fake Invoices.
A case was booked against M/s. Baan Ganga Impex having their Principal Place of Business at L-10A, Ganga Tower, in Delhi’s Mahipalpur, (GSTIN 07AAMFB0425A1Z4).
From preliminary scrutiny of the seized documents, the data/information available on E-way Portal/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 finance ministry said in a statement.
Finally, the ITC from all the suppliers was being passed on to M/s Baan Ganga Impex which in turn availed the refund on the strength of export of goods procured from the unregistered suppliers, the statement added.
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.
In total M/s Baan Ganga Impex has availed the invoices from the fake entities amounting to Rs 685 crore (approx.) involving GST of Rs 50 crore (approx.) and succeeded to get a refund of Rs 35 crores (approx), a press release issued by the ministry said.
On the basis of investigations, 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, was arrested November 9 and was produced before the Metropolitan Magistrate, Saket Courts on the same day, 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.