GST Officers Busted Fictitious Exporter In ITC Fraud

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Delhi’s GST officers busted a fictitious exporter in ITC fraud of Rs. 134 crore. The Central Goods and Service Tax (CGST) officials have exposed a network of spurious exports and arrested a man named Chirag Goel in connection with GST fraudulent Input Tax Credit (ITC) of Rs. 134 crore. He intended to claim a GST Return filing fraudulently.

As per the information provided by the Minister of State Finance, Pankaj Chaudhary, the CGST officers have detected 7268 cases of ITC fraud involving more than Rs. 31000 crore during the fiscal year of 2020-21.

As per the Ministry, the CGST officers, Delhi East, went through the detailed analysis and rooted out the network and the mastermind behind the ITC fraud. Based on the Risk Analysis, a risky exporter M/s Vibe Tradex was found for investigation. M/s Vibe Tradex is an exporter of Pan masala, chewing tobacco, and other consumer goods owned by Chirag’s associates.

This article gives detailed information regarding the news of GST Officers busted fictitious exporters in ITC Fraud.

What does the investigation say about GST Officers Busted Fictitious Exporter In ITC Fraud?

In the investigation of the e-way bills, It was found out that two of Chirag’s associates-owned supplier firms have pretended the vehicles with generated e-way bills for supply of goods had entered Delhi during a said period. But in reality, the vehicles with generated e-way bills were being used in distant cities of Gujarat, Maharashtra, Madhya Pradesh and had never entered Delhi.

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Mr. Chirag Goel framed the conspiracy well. He tried to deceit the government through GST Return filing, and committed crimes stated under Section 132(1)(c) of the CGST Act, 2017, which are identifiable and non-bailable.

Now he has been arrested and remanded to 14 days of judicial custody by the Metropolitan Magistrate Patiala House Courts, New Delhi, till October 26, 2021.

Importance of GST Registration and GST Return Filing

For a seamless flow of a business, GST registration is the most fundamental requirement for collection of tax and to avail Input tax credit for the inward supplies on behalf of the government.  fraudsters are always trying to find ways to cheat the government and fill their pockets with illegal income.

Therefore, to prevent tax evasion and ITC fraud, the GST law committee is suggesting many screening and validations in GST registration and execution. The government is coming with measures such as implementing e-invoicing, making the refund process fully automatic, specifying time limits for the processing of claims.  To conclude, it’s best to get your GST Returns filed through a professional and on time to avoid complications and punishments.

GST Return filing Defaulters cannot Raise E-way bill

Moreover, If you want any other guidance relating to GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.

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