Interstate GST racket busted in Jammu and Kashmir

The State Taxes Department, Jammu has busted a fake GST firms’ racket operating in Jammu & Kashmir and New Delhi, official said on Saturday. 

“On the basis of specific inputs, the enforcement team of State Taxes Department, Jammu detained vehicle bearing No.RJ09GB – 2622 carrying goods worth Rs.40 lac to the State,” said a spokesman, in a statement.


On physical inspection of the vehicle, he said, the documents produced by the transporters were put to online scrutiny. “It was found that the racket is operational since April, 2018 and is deeply involved in issuance of fake GST invoices along with fake e-way bills,” he said.

“The principal racket master operated under the name & style of Mahima Enterprises, A.R. Electricals and Mahima Garments Export under the proprietorship of Rajeev Bhatia from Delhi and in connivance with fake GST number holders viz., Mahima Trade Mart, P.K. Pal Traders, Santosh Traders, Kathua, Ravish Traders, Kathua and Khan Enterprises, have been trading goods illegally for quite some time into the State from Delhi,” added the statement.

The spokesman added that Mahima Enterprises, A.R. Electricals and Mahima Garments Export are under the proprietorship of Rajeev Bhatia while Mahima Trader Mart, Jammu is under the proprietorship of Ankita Bhatia. 

“The fake racket firms in league with Blue Dot Couriers have till date successfully evaded the GST using their ulterior practices,” said the spokesman.

The State Taxes Department has, due to interstate operation of the racket, shared the information with Principal Director General, Central Excise (Intelligence), New Delhi requesting a deep enquiry on all the transactions / actions of the above-mentioned fake GST firms operating from New Delhi so as to ensure no further loss of GST Revenue on this count. 

“It is being apprehended by the Department that similar modus operandi might be in operation with other States as well,” said the spokesman.

Additional Commissioner, State Taxes (Administration & Enforcement), Jammu Mohammad Shahid Saleem while briefing the media, mentioned that on scrutiny of all the firms it was found that same are fake and have not filed GST returns from October onwards while nil returns have been filed till October, 2018 despite having traded goods worth approximately rupees fifteen crores. 

He maintained that the address locations of all fake GST firms located at Jammu & Kathua were checked physically and it was found that none of these firms are in existence at the given addresses and some other businessmen / enterprises were found active at the given sites/addresses. 

He mentioned that the State Tax Team also seized records of Blue Dot Courier at Narwal, Jammu to check its credentials and trade records. 

The said firms also operate from an address being used by P.K. Pal Traders, a fake firm under scrutiny in the case. 

He mentioned that this case is first of its kind busted by the State Taxes Department, Jammu and it will be taken to logical conclusion as per GST law soon.

-GK

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