The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Shri Surender Kumar Gupta resident of New Delhi on charges of availing and passing on fake input tax credit by way of receipt/issuance of invoices without any actual supply of goods or services.

It is apparent from the investigation conducted till date, that Shri Surender Kumar Gupta, Director of M/s. Mystic Exim Pvt. Ltd., M/s. Landmark Traders Pvt. Ltd. and Controller of M/s. JKM Impex forged documents to show receipt of goods in his above mentioned companies/firms from multiple fictitious/non-existent entities, which never existed at their given addresses.  The entities of Shri Surender Kumar Gupta had further passed on the fake ITC to multiple exporter firms, who had further encashed such ITC through fraudulent IGST refunds.

The investigation spanned multiple locations in Delhi/Gurugram and based on documentary evidence and statement recorded, it was ascertained that Shri Surender Kumar Gupta is a key person in orchestrating this racket of availing fake ITC.

Accordingly, Shri Surender Kumar Gupta was arrested on 05/02/2021 and produced before Duty Magistrate, Tihar Complex, New Delhi, who ordered judicial custody.  From the investigations conducted till date, it appears that the total value of goods involved in the subject transactions is more than ₹ 600 crore and the total fake ITC availed by entities of the accused is more than ₹ 69 crore.

Further investigations in the matter are under progress.

Fraudulent input tax credit uncovered, leading to arrest and ongoing investigation into fake invoices and refund abuse. Arrest relates to alleged large scale fraudulent appropriation and passing on of input tax credit through invoices without actual supply, where the accused, as director/controller of multiple entities, purportedly forged documents, used fictitious suppliers, and passed fake ITC to exporters who monetised it via fraudulent IGST refunds; investigations identify the accused as a central orchestrator and remain ongoing.