Seven firms were created in order to generate bogus GST invoices with intent to pass on fraudulent ITC without actual movement of goods and without paying actual GST to the government.In order to create bogus GST invoices, seven companies were formed with the intent of passing on fraudulent ITC to the government without any actual movement of goods.
These entities have generated goods-less GST invoices of value about Rs 220 crore and passed inadmissible ITC amounting to around Rs 34 crore.These entities generated GST invoices that were goods-less and amounted to Rs 220 crore.
They also passed on inadmissible ITC amounts of around Rs 34 crore.
Rishabh Jain was the mastermind behind running this racket of creating bogus firms and generating/selling bogus GST invoices, the department said.
Rishabh Jain was responsible for this racket, which consisted of creating fake firms and selling fake GST invoices.
The modus operandi involved creating multiple firms with the intent to avail/utilise and pass on inadmissible credit.
Modus operandi was the creation of multiple companies with the intention to use/pass on inadmissible credits.The firms involved in this network are Blue Ocean, Highjack Marketing, Kannha Enterprises, SS Traders, Evernest Enterprises, Gyan Overseas, and Viharsh Exporters Pvt Ltd.This network includes Blue Ocean, Highjack Marketing and Kannha Enterprises.Also Evernest Enterprises and Gyan Overseas are involved.
Jain tendered his voluntary statement admitting his guilt.Jain submitted his voluntary confession admitting guilt.
He admitted that due to non-payment against overdraft account of the Central Bank of India, the business premises were sealed by bankers.Jain admitted that the Central Bank of India had refused to pay the overdraft amount and the bankers sealed the premises.
Thereafter, he indulged into issuance of bogus GST invoices without actual movement of goods.He then effected bogus GST invoices, without actually moving any goods.
Jain has knowingly committed offences under Section 132(1)(b) of the CGST Act, 2017 which is cognisable and non-bailable offences as per the provisions of Section 132(5) and are punishable under clause (i) of the sub section (1) of Section 132 of the Act ibid.Jain has knowingly committed offences according to Section 132(1)(b), CGST Act 2017, which are cognisable, non-bailable offenses as per Section 132(5).
They are also punishable under clause i of the subsection (1) of Section 132.Accordingly, Jain has been arrested under Section 132 of the CGST Act on November 13 and sent to judicial custody by the duty Metropolitan Magistrate till November 26, the department said.Jain was therefore taken into custody under Section 132 of CGST Act on November 13, and placed in judicial custody by the Metropolitan Magistrate until November 26, according to the department.
Further investigations are in progress, it added.It added that further investigations are ongoing.
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