It has been reported in another case of busting of GST evasion that the Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Shri Rajesh Kasera resident of New Delhi on charges of IGST fraud by way of illegally availing input tax credit (ITC) on invoices without actual involvement of goods, and encashing through IGST refund mode by resorting to overvalued exports.
Based upon the investigation conducted till date by DGGI, it is apparent that Shri Rajesh Kasera created and controlled two companies by the name of M/s S.K. Traders helmed by dummy director Shri Sushil Kumar Goyal and another by the name of M/s R.K. Enterprises, based in New Delhi and Faridabad respectively.
M/s S.K. Traders had availed/passed on fraudulent ITC of Rs. 3.47 crore on invoices without accompanying goods.
Further M/s R.K. Enterprises had passed/availed fraudulent ITC of Rs. 5.25 crore on invoices without accompanying goods.
The investigation by DGGI spanned multiple locations in the Delhi NCR area and based on documentary evidence and statements recorded, it was ascertained that Shri Rajesh Kasera was the de facto controller of M/s S.K. Traders and proprietor of M/s R.K. Enterprises.
Both the said entities indulged in the act of wrong availment /passing on of Input Tax Credit of Rs. 8.72 crore. Accordingly, Shri Rajesh Kasera was arrested on 7.12.20 and produced before Duty MM Delhi, who ordered judicial custody.
A total fake ITC of more than 8.72 crore has been thus passed/availed by the accused which was subsequently used for wrongly availing IGST refund.
Further investigations in the matter are under progress.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
