Laws & Taxes

Delhi: ₹347 crore fake GST scam exposed across 11 Firms, 1 held

GST scam exposed across 11 firms in Delhi

The Delhi State GST Department exposed a ₹347 crore fake GST scam across 11 firms. The proprietor of Super Steel India, Mayank Jain, believed to be one of the kingpins, was arrested on January 1, 2022. 

What is the ₹347 crore fake GST scam?

The ₹347 crore fake GST scam exposed across 11 firms used fake or inflated invoices on goods supply without actually supplying them. The fake GST scam also included counterfeit bills to issue fraudulent Input Tax Credits to evade taxes. 

The 11 firms accused in the fake GST scam in Delhi belong to one person. The 11 firms’ creation has generated speculation that their invention was to avoid detection under the tax laws. 

The total tax evaded in the fake GST scam is nearly ₹40 crore. 

The ₹347 crore fake GST scam exposed across 11 firms by enforcement officials

GST officers went through a complex data-driven investigation to expose the fake GST scam across 11 firms. The breakdown of the GST scam uncovers that four firms out of eleven had filed their taxes from the same IP address. 

The investigators discovered that four firms had the same email address, and six had the same phone number. Furthermore, two different firms out of the eleven possessed the same bank account number. 

How was the ₹347 crore fake GST scam across 11 firms exposed by GST department officials?

The GST department officials exposed the ₹347 crore fake GST scam across 11 firms, thanks to the ‘Fake Firms Investigation’ cell establishment dedicated to taking action against fraud ITC cases. 

The Fake Firm Investigation cell successfully uncovered the fake GST scam, and further investigation will take place on other firms in the suspicious business chain. 

On Friday, the Fake Firm Investigation cell apprehended a prominent mobile phone supplier for Rs 2.5 crore tax evasion.

Official statements on the ₹347 crores fake GST scam exposed across 11 firms

Special Commissioner (anti-evasion) of the Delhi GST Department, Prince Dhawan, said, “This is the first arrest by the Delhi GST Department and we hope that it sends a strong signal to tax evaders.”

An official said, “The figure could go up as the upstream and downstream dealers of these firms are further scrutinized. The GST department will also take up investigation of other firms in the business chains of these suspicious firms, including those spread across other states outside Delhi.”

The ministry said in a statement, “Based upon specific intelligence, the officers of the Anti Evasion branch of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have unearthed a case of availment/utilization and passing on of inadmissible input tax credit (ITC) through bogus GST invoices without actual movement of goods of Rs 34 crore (approx).” 

Final words on the ₹347 crore fake GST scam exposed across 11 firms

Mayank Jain, one of the kingpins of the fake GST scam exposed across 11 firms, is arrested by the Delhi State GST Department. He is remanded to 14 days of judicial custody by the judicial magistrate. 

In Conclusion,

The fake GST scam exposed across 11 firms is still under investigation. With one successful arrest, more are likely in the inquiry. 

Also Read – Income Tax Saving: How to avoid paying taxes legally

Johannah is a passionate traveler. She is seeking remote places across India and exploring the benefits of being a Nomad. She has completed her bachelor's in Psychology Hons and diploma in Graphology. Being able to write helps her to share her experiences and be independent to travel anywhere.

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