Through extensive analysis of E-way bills, CGST Delhi East Commissionerate had busted a syndicate of five firms who were engaged in availing and utilising fake Input Tax Credit (ITC) of Goods and Services Tax (GST).

During further investigation it was found that this syndicate was using two more entities namely, M/s Shree Mahaveer International and M/s Gravity Enterprises. A communication was also received from GST, Gujarat State that a car bearing registration no. DL8CAS5941, registered in the name of one of the syndicate firm M/s Blue Water Expotrade Private Limited was intercepted by them in Ahmedabad. FastTags of Trucks were affixed on the car to create false movement of export goods from Delhi to Mundra port. The E-way bills in respect of the fake supply were issued by M/s Shree Mahaveer International.

Search was conducted at residential premises of Shri Rakesh Kumar Jain, proprietor in M/s Shree Mahaveer International and Partner in M/s Gravity Enterprises on 10^th March 2022. Shri Rakesh Kumar Jain in his voluntary statement admitted that bogus invoices were received and issued from these syndicate firms without actual supply of goods.

It was evident that Shri Rakesh Kumar Jain was using multiple firms to avail and pass on fake ITC on bogus invoices and E-Way Bills without actual supply of goods. The quantum of GST evaded by him is more than ₹ 85 crore.

Therefore, he was arrested on 10^th March 2022 for committing offences specified under Section 132(1)(b)&(c) of the CGST Act, 2017 and produced before Metropolitan Magistrate Patiala House Courts, New Delhi.

Investigation by CGST Delhi (East) Commissionerate so far has unearthed fake ITC racket by seven firms namely, M/s Vibe Tradex, M/s Prime Mark Expotrade Private Limited, M/s Blue Water Expotrade India Private Limited, M/s Transglobe Tradex Private Limited, M/s Tirupati Overseas, M/s Shree Mahaveer International & M/s Gravity Enterprises. Further investigation in the case is under progress.

GST evasion through fake Input Tax Credit exposed; arrest under CGST Act for fraudulent ITC scheme. A cluster of firms created bogus invoices and E-way bills to claim and transfer Input Tax Credit (ITC) without actual supply, using simulated export movements and vehicle FastTags to support false GST filings. Searches and voluntary admissions linked the proprietor to multiple entities; alleged evasion exceeds a large sum. Enforcement included arrest under Section 132(1)(b)&(c) of the CGST Act, identification of seven implicated firms, and ongoing investigation by CGST Delhi (East) Commissionerate.