Satender Kumar along with Vikas Jain in Custody, Multi crore ITC Fake Credit Alleged

[MoF Press Release/24.11.2020]

In pursuance of ongoing investigation of fraudulent passing of Input Tax Credit (ITC) wherein one person namely Satender Kumar Singla of Hisar was arrested on 12.11.2020, the Directorate General of GST Intelligence (DGGI), Regional Unit, Rohtak falling under Gurugram Zonal Unit has arrested one more person namely, Vikas Jain, of Jind on 23.11.2020. Vikas Jain was the proprietor of one of the firms and as a proprietor of a firm was found involved in issuing fake invoices having taxable value of Rs. 27.99 Crore and was also found involved in handling cash of other such firms issuing fake invoices to pass ITC fraudulently. Vikas Jain has thus himself committed the offence as well as abetted the commission of offence by issuing fake invoices from various firms without actual movement of goods having taxable value of Rs. 75 Crore (approx.) and fraudulently passing ITC over Rs. 13 Crore. He passed on such fraudulent ITC to some of the buyers who availed of 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, Vikas Jain has admitted his involvement in issuing only invoices without actual movement of goods for earning commission and admitted that cash entries in the records resumed were of such commission which were in his own handwriting.

Thus, Vikas 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 under Section 132(5) of the CGST Act, 2017, being punishable under Section 132(1)(l)(i) of the CGST Act, 2017.

Consequently, Vikas Jain was arrested on 23.11.2020 under Section 69(1) of the CGST Act, 2017, following which he was produced before the Judicial Magistrate First Class (JMIC), Rohtak. The Judicial Magistrate First Class, Rohtak, has remanded Vikas Jain to judicial custody of 14 days. Further investigations in the matter are in the progress.