DGGI busts firm for making bogus Input Tax Credit invoices of more than Rs 268 crores

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The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana, has arrested Shri Nitin Jain, resident of Sonepat, Haryana, proprietor of M/s Shiv Trade Incorporation, Delhi, for issuing bogus invoices.

During investigation it was revealed that Shri Nitin Jain has issued bogus invoices through his firm M/s Shiv Trade Incorporation and another firm M/s Om Trade Inexim, opened in the name of dummy person, of various types of goods namely ferrous/ non-ferrous scrap, ingots, nickel cathode etc. amounting to Rs 268.3 crores (approx).

Through bogus invoices, Shri Nitin Jain has fraudulently passed Input Tax Credit (ITC) amounting to Rs 41.6 Crores (approx). This ITC was further availed by various entities to offset their GST liability and also passed on such fraudulent ITC to further buyers who availed the same to discharge their GST liability against their outward supplies with an ulterior motive to defraud the Government exchequer. During the course of investigation Shri Nitin Jain also admitted of having issued bogus invoices in lieu of certain fixed commission.

Thus, Shri Nitin Jain has committed offences under the provisions of Section 132(1)(b) & (c) of the Central Goods & Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017. Consequently, Shri Nitin Jain was arrested on 12th February, 2020 under Section 69(1) of the CGST Act, 2017 and produced before Judicial Magistrate in Gurugram Court on 12th February, 2020. Court has sent him to judicial custody for 14 days. Further investigation in the matter is in progress.