Pune : Company director arrested for claiming Rs 5.31 crores GST refund without supplying goods

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Sumit Singh

Pune, November 17,2019: The Headquarters Preventive Unit of Pune-II, CGST Commissionerate while acting on intelligence has busted a Modus Operandi of GST evasion by using fake invoices. M/s Jay Plast Pack Pvt Ltd. having registered place of business at Pandharpur, Dist. Solapur is found to be involved in the said activity.

According to officials, fake GST invoices of approximately Rs 25 Crores were used to avail and utilise bogus Input Tax Credit (ITC) for export of goods on payment of GST. Further a GST refund of Rs 5.31 Crores was obtained fraudulently to dupe the Government Exchequer.

The accused is a part of a racket involving issue of lake GST invoices to claim fraudulent input tax credit (ITC) from the government without any receipt or supply of goods.

Sushil Kumar Kale, Joint Commissioner of CGST II commissionerate, said that during the investigation, it was observed that M/s Jay Plast Pack Pvt. Ltd. is procuring invoices of raw material (Tobacco, Neem Pack) from firms in Delhi and exporting ‘Indian Organic Termiticide’ (a finished product). But the firm has no manufacturing facility. Further the taxpayer has neither received the entire export remittances nor made entire payment of GST on the supplies received.

The statement of the accused Rakesh Jaywant Surekar (Director of the firm) was recorded who has admitted to this modus operandi, CGST commissionerate officials said.

Consequently he was arrested on 15.11.2019 by the team of Headquarter Preventive Unit and has been remanded to judicial custody for 14 days.
Further investigations in the matter are in progress.