1 Racketeer arrested in Rs 41.6 Cr fake GST invoice scam in Gurugram

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The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana, has arrested Nitin Jain, a resident of Sonepat, Haryana and proprietor of Shiv Trade Incorporation, Delhi, for issuing bogus invoices. During the investigation, it was revealed that Jain had issued bogus invoices through his firm Shiv Trade Incorporation and another firm Om Trade Inexim, opened in the name of a dummy person, of various types of goods namely ferrous/ non-ferrous scrap, ingots, and nickel cathode amounting to Rs 268.3 crores.

Through bogus invoices, Jain has fraudulently passed Input Tax Credit (ITC) amounting to Rs 41.6 Crores. This ITC was further availed by various entities to offset their GST liability and also passed on such fraudulent ITC to further buyers who availed the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the Government exchequer. During the course of the investigation, Jain also admitted of having issued bogus invoices in lieu of certain fixed commission.

Thus, Jain has committed offences under the provisions of Section 132(1)(b) & (c) of the Central Goods & Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017. Consequently, Jain was arrested on 12 February under Section 69(1) of the CGST Act, 2017 and produced before Judicial Magistrate in Gurugram Court. The Court has sent him to judicial custody for 14 days as further investigation in the matter is in progress.

Read More at: https://indusdictum.com/2020/02/14/1-racketeer-arrested-in-rs-41-6-cr-fake-gst-invoice-scam-in-gurugram-web-of-fraud-companies-found/

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