3 Caught In A Gst Fraud Of Rs. 687 Crores

Reported under GST on 20/12/2018

One more GST fraud case has been caught in Mumbai. The quantum of fraud is amounted at Rs. 687 crore.

The case is related to fake invoices for wrong utilisation of GST input credit. As per the latest case 3 businessman in Mumbai have been caught in Mumbai for issuing bogus sales invoices and obtaining bogus invoices for taking wrong input credit.

Accused 3 persons never received any physical goods or availed services but took benefits of wrong input tax credit.

Names of 3 persons involved in fraud are:

  1. Rahul Saraf
  2. Rajesh Mehta
  3. Urvil Jani

Rahul Saraf is the director of Maxgrow Overseas Limited and availed wrong input tax credit of Rs. 61 crores.

Rajesh Mehta, CEO of Mehta group of companies availed wrong input credit amounting to Rs. 471 crores.

Urvil Jani who is director of Oneworld Group of companies availed input credit of Rs. 155 crores.

Method of Fraud

Fraud is done using the traditional method of issuing and getting fake invoices. This was a major problem during VAT regime too and it was difficult to catch defaulters due to CST laws and involvement of different states. However under GST things are processed at real time and GSTN is looking at returns and E-way bill data.

The main intention of companies was to get loans from banks by inflating sales. These accused have floated multiple shell companies on the names of employees and relatives.

The transactions were done among these shell companies.

India is going through a tough time due to increase in NPA's of banks. The main intention was to inflate sales and take loans from banks.

However GST department should be applauded for unearthing massive fraud.

Author
Posted by GST Payer under GST

I am a GST consultant and write latest news on KYG and here to learn and share GST Laws. I get my clients from KnowyourGST. Need clients? Post answers and help public just like I do :)Contact



Ask Question