On the basis of review of high amount of out go on account of ITC refund, followed it up with data mining/analysis on GSTN and E way bill portals, the officers of CGST Delhi South Commissionerate, have busted a syndicate of firms involved in availing incorrectly ITC issued on the GSTIN of fake/ dummy firms and getting Refund of ITC on the strength of such fake Invoices.
The officers have booked a case against M/s. Baan Ganga Impex having their Principal Place of Business at L-10A, Ganga Tower, Mahipalpur, New Delhi-110037 (GSTINO7AAMFB0425A1Z4). From preliminary scrutiny of the seized documents, the data/information available on E-way Portal/ GSTN portal, it is found that M/s Baan Ganga Impex, New Delhi has availed ITC on Invoices originating from 48 non-existing entities creating a web of suppliers amongst themselves and passing on ITC to each other.
Finally, the ITC from all the suppliers is passed on to M/s Baan Ganga Impex which in turn avails ITC refunds on the strength of export of goods procured from the fake suppliers. The modus operandi included bogus firms also fabricated vehicle numbers to generate e-way bills which were found to be of two wheelers, buses, JCB, private cars, ambulance etc. In total, M/s Baan Ganga Impex has used the invoices from fake entities amounting to Rs.685 Crores (approx.) involving ITC to the tune of more than Rs. 50 Crore.
The firm is in business of export for last 25 years. It is a unique case in which an established firm has indulged in dealings with fly by night operators involved in the business of fake invoicing. Whether the firm M/s Baan Ganga Impex itself created these fake firms is under investigation. Shri Rakesh Sharma, Partner of M/s Baan Ganga Impex has been arrested on 09.11.2020 and was produced before the Honble M M, Saket Courts on 09.11.2020. Shri Rakesh Sharma has been sent to judicial custody for 14 days by the Hon’ble Metropolitan Magistrate. Further investigations are in progress.
Firm action has been taken by CGST Delhi Zone in this financial year i.e. 2020-21, has resulted in detection of 318 cases involving GST evasion of 2747 Crores and 6 accused have been arrested so far.