Delhi CGST Officials arrested a person for fraudulently claiming ITC of Rs 134 crore

Officers from the Central Goods and Services Tax (CGST) Commissionerate, Delhi East, conducted a thorough investigation and discovered a network of fictitious exporters who were claiming and using fake Input Tax Credit (ITC) of Rs 134 crore under the Goods and Services Tax (GST) with the intent of fraudulently claiming IGST refunds.

A problematic exporter, M/s Vibe Tradex, was flagged for investigation based on Risk Analysis. M/s Vibe Tradex specialises in the export of Pan Masala, chewing tobacco, and other consumer goods.

Mr Chirag Goel, an MBA from the University of Sunderland in the United Kingdom, was in charge of the fictitious exporter network. The vehicles for which the e-way bills were generated for purported supply of goods were being used in distant cities such as Gujrat, Maharashtra, and Madhya Pradesh and had never entered Delhi during the said period, according to an extensive analysis of the e-way bills generated by two supplier firms/ companies owned by his associate, who is at large. The bogus Input Tax Credit that was obtained and used is worth Rs. 134 crore.

Mr Chirag Goel masterminded a deep-rooted conspiracy to defraud the Government and committed offences specified under Section 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable.

He has been remanded to judicial custody by the Metropolitan Magistrate Patiala House Courts, New Delhi, for a period 14 days till 26.10.2021. Further investigation in the case is under progress.