AHMEDABAD: A tip-off from Gujarat’s state goods and services tax (SGST) department to the Central GST (CGST) Commissionerate in Delhi has helped bust a syndicate of seven firms which evaded GST of Rs 85 crore. The fake billing scam was recently dismantled. A completely new modus operandi was encountered in the case. 

About four months ago, SGST Gujarat officials had intercepted and searched a passenger car at Samakhiali toll plaza near Gandhidham. The car was registered in the name of a firm called Blue Water Expotrade Private Limited. 

“This car had the FASTags of various trucks and it cruised through several toll booths between Delhi and Mundra,” an SGST Gujarat official said. 

“The aim was to create a fake paper trail proving the movement of export goods.” The official added: “The e-way bills were generated using fake bills supplied by another syndicate firm, Mahaveer International.” 

The e-way bills were used to show fictitious exports, and fake bills from 12 Delhi-based firms were involved. 

Bogus exports worth Rs 3,641 crore were recorded. Pan masala, tobacco, smoking mixtures, Amul buttermilk, rice, hair oil, chips, and snacks were among the products shown as exports. Refunds to the tune of Rs 55 crore were obtained by these firms. 

The department officials had alerted the Delhi CGST East Commissionerate. Further investigation and an extensive analysis of e-way bills led the CGST department to bust the syndicate of these firms. 

Following searches conducted at the residence of Mahaveer International’s promoter, Rakesh Jain, he admitted that bogus invoices were received and issued from syndicate firms without the actual supply of goods. 

Jain was arrested on Thursday by CGST officials in Delhi. Further probe on the supply of the e-way bills and evasion is underway.