GST Intelligence busts fake companies, arrests mastermind
Zonal Mumbai Unit Directorate General of GST Intelligence has broken down the input tax fraud case (ITC). GST Intelligence has declined at the promoter of seven companies that utilize input tax credits worth RS 118 Crores.
Mumbai Zonal Unit of GST Intelligence, GST Investigation Wing, has captured Santosh Doshi, which controls seven charity companies Overseas Pvt Ltd, C-Kluster Expotrade Pvt Ltd, Ekon Crystalmerchants Pvt Ltd, Ninad, Ninad Overseas Pvt Ltd, Parees Overseas Pvt Ltd and White Opal Expotrade Pvt Ltd.
A source at GST told MoneyControl, “These companies cheat to use input tax loans (ITC) without supply of goods and services on the strength of fake invoices and claim Rs 118 Crore as a refund of export.”
The source further said, “the modus operandi involved in this financial fraud is that several doll units are made in Jharkhand and West Bengal based on false documents. They continued the Bogus ITC to several Shell trading companies that act as an intermediary entity located in the state of Chhattisgarh . Furthermore, several units were created as export fronts in Pune and Mumbai in the state of Maharashtra to whom the units located in Chhattisgarh supply fictitious items issued to be exported. “
Another source that handles this case to moneycontrol, “the export unit was created only for the purpose of sending a refund chipped. To catch the mastermind behind all financial fraud channels, DGGI Mumbai launched the operation, by searching for Chas, CAS, CSS, key people, and shipping forwarders, and some statements were recorded. It was revealed that Doshi, Pune, Maharashtra, was actually a promoter and operator of the seven export companies. He is also the Managing Director of M / S Masumi Overseas Pvt. Ltd.
The defendant created a complex web using several layers of transactions ranging from producers to traders including and in the end for exporters to facilitate the ITC accumulated encashment.
Doshi was arrested on August 17 and has been returned to hard resistant. He was previously captured by Customs Mumbai in 2016.
