Delhi GST officers busts fictitious exporter network for Rs.134 Cr ITC Fraud

GST officers in Delhi have busted a network of fictitious exporters and arrested one person for fraudulently claiming input tax credit of ₹134 crore.

The Finance Ministry said that based on risk analysis, M/s Vibe Tradex, engaged in export of Pan Masala, chewing tobacco, FMCG goods etc, was identified for scrutiny.

“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," the Ministry said.

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 Gujarat, Maharashtra, Madhya Pradesh and had never entered Delhi during the said period.

The statement said that Goel masterminded the conspiracy to defraud the government. He has been remanded to 14 days judicial custody till October 26. Further investigation in the case is under progress.