DGGI Gurugram arrests Delhi man for illegally availing ITC

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SME Times News Bureau | 08 Dec, 2020
The Directorate General of GST Intelligence's (DGGI) Gurugram Zonal Unit has arrested a Delhi resident on charges of IGST fraud by way of illegally availing input tax credit (ITC) on invoices without goods, and encashing through IGST refund mode by resorting to overvalued exports, an official statement said on Tuesday.

The Finance Ministry statement said that the arrested person, Rajesh Kasera, created and controlled two companies by the name of S.K. Traders helmed by dummy director Sushil Kumar Goyal and another by the name of R.K. Enterprises, based in New Delhi and Haryana's Faridabad, respectively.

S.K. Traders had availed or passed on fraudulent ITC of Rs 3.47 crore to on invoices without accompanying goods, while R.K. Enterprises had passed or availed fraudulent ITC of Rs 5.25 crore on invoices without accompanying goods.

The investigation spanned multiple locations in Delhi-NCR area and based on documentary evidence and statements recorded, it was ascertained that Kasera was the de facto controller of S.K. Traders and proprietor of R.K. Enterprises.

Both these entities indulged in the act of wrong availment or passing on of Input Tax Credit of Rs 8.72 crore.

"Accordingly, Kasera was arrested on 7.12.20 and produced before Duty MM Delhi, who ordered judicial custody. A total fake ITC of more than Rs 8.72 crore has been thus passed/availed by the accused which was subsequently used for wrongly availing IGST refund," said the statement.

Further investigations in the matter are under progress, it said.