Fake Billing Racket: Chartered Accountant Arrested for Issuing Fake Bills of Rs 79.5 Crore, Say Delhi CGST Officials
The syndicate was being operated by Nitin Jain, a CA who floated three firms -- M/s Anshika Metals, M/s N J Trading Co and M/s A J Enterprises -- using the identity of his family members, with the intent of passing of inadmissible ITC, it said.
New Delhi, January 15: The officers of Central Goods and Service Tax (CGST) Commissionerate, Delhi (East) have detected a case of issue of fake bills of Rs 79.5 crore to wrongfully avail Input Tax Credit (ITC) and arrested a Chartered Accountant (CA), according to an official statement issued on Friday.
The syndicate was being operated by Nitin Jain, a CA who floated three firms -- M/s Anshika Metals, M/s N J Trading Co and M/s A J Enterprises -- using the identity of his family members, with the intent of passing of inadmissible ITC, it said. GST Fake Billing Racket of Rs 131 Crore and Fraudulent Input Tax Credit of Over Rs 26 Crore Busted by Nagpur Unit.
Jain through these firms has passed on fake ITC to the tune of Rs 14.30 crore, said the statement issued by the Commissionerate. “All the e-way bills generated to transport the goods were also found fictitious,” it said.
Jain, who was absconding since December 16, 2020, appeared before the investigating officers on January 13, and in his statement accepted that he has floated three fictitious firms using identity of his father Naresh Chand Jain and his wife Diksha Jain for the purpose of availing and passing of fake ITC, the statement claimed.
“Significantly, in 2 earlier cases of fake billing detected by the Delhi East Commissionerate in which Sachin Mittal and Dinesh Jain were found involved in issue of bogus invoices and had passed fake ITC of Rs 12 crore and Rs 13.98 crore respectively through their firms had in their statements also revealed the name of Nitin Jain, CA and stated that he had arranged/provided them fake bills/invoices of different firms on commission basis,” it said. Income Tax Department Seizes Rs 62 Crore Cash From Entry Operator Sanjay Jain, Beneficiaries.
Jain was arrested and produced before the duty magistrate, wherein he has been remanded in judicial custody of 14 days, said the statement. The consolidated amount of detection under fake invoices for the current year is Rs 3,684.46 crore and the total number of arrests for the zone is 18, it said.
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