The officers of Central Goods and Services Tax (CGST) Commissionerate, Delhi East, carried out the detailed analysis and unearthed a network of fictitious exporters who were availing and utilizing fake Input Tax Credit (ITC) of ₹ 134 crore under the Goods and Services Tax (GST) with an intent to claim IGST refund fraudulently.

On the basis of Risk Analysis, a risky exporter M/s Vibe Tradex was identified for scrutiny. M/s Vibe Tradex is engaged in export of Pan Masala, chewing tobacco, FMCG goods etc.

The network of fictitious exporters was being operated by a person named Mr Chirag Goel, who is an MBA from University of Sunderland, UK. On an extensive analysis of the e-Way Bills generated by two supplier firms/ companies owned by his associate, who is at large, it was found that the vehicles for which the e-way Bill were generated for purported supply of goods were being used in distant cities namely Gujrat, Maharashtra, Madhya Pradesh and had never entered Delhi during the said period.  The fake Input Tax Credit availed and utilized is ₹ 134 crore.  

Mr Chirag Goel masterminded a deep-rooted conspiracy to defraud the Government and committed offences specified under Section 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable.  He has been remanded to judicial custody by the Metropolitan Magistrate Patiala House Courts, New Delhi, for a period 14 days till 26.10.2021.  Further investigation in the case is under progress.

Fraudulent Input Tax Credit claim leads to arrest for alleged IGST refund fraud and ongoing GST investigation. Central GST officers uncovered a network of fictitious exporters that allegedly availed and utilized fake Input Tax Credit to claim unlawful IGST refunds. Risk analysis identified a risky exporter and e way bill tracing showed purported supplies inconsistent with vehicle movements, supporting a coordinated scheme. An individual alleged to have masterminded the network was arrested and remanded to judicial custody; further criminal investigation by tax authorities is ongoing.