On the basis of specific intelligence as well as further data mining/analysis on GSTN and E way bill portals, the officers of CGST Delhi South Commissionerate, have busted a syndicate of firms involved in availing invoices/E-way bills issued on the GSTIN of fake/dummy firms and getting Refund of IGST on the strength of such fake Invoices.

A case was booked against M/s. Baan Ganga Impex having their Principal Place of Business at L-10A, Ganga  Tower, Mahipalpur, New Delhi-110037 (GSTIN 07AAMFB0425A1Z4).

From preliminary scrutiny of the seized documents, the data/information available on E-way Portal/GSTN portal, it is found that M/s Baan Ganga Impex, New Delhi has availed Invoices from non-existing 48 entities creating a web of suppliers among themselves and passing on ITC to each other. Finally, the ITC from all the suppliers is passed on to M/s Baan Ganga Impex which in turn avails refund on the strength of export of goods procured from the unregistered suppliers.  The nexus has used fabricated vehicle numbers to generate e-way bills which were found to be of two wheelers, buses, JCB, private cars and Ambulance etc.

In total M/s Baan Ganga Impex has availed the invoices from the fake entities amounting to ₹ 685 crore (approx.) involving GST of ₹ 50 crore (approx.) and succeeded to get refund of ₹ 35 crores (approx). 

Shri Rakesh Sharma, Partner of M/s Baan Ganga Impex being the main beneficiary of the said nexus and dealing with all operational activities of the firm, has been arrested on 09.11.2020 and was produced before the Metropolitan Magistrate, Saket Courts on 09.11.2020, after the medical examination and COVID test.  Shri Rakesh Sharma has been sent to judicial custody for 14 days by the Metropolitan Magistrate. Further investigations are in progress. 

Fraudulent GST refund claims uncovered after bogus invoices and e way bills were used to launder input tax credit. A syndicate used fabricated invoices from non existent suppliers and falsified e way bills to transfer and consolidate input tax credit to a beneficiary firm, which then claimed IGST refunds on the basis of those fake invoices; enforcement action led to an arrest and ongoing investigation based on GSTN and e way bill data analysis.