The Goods and Services Tax and Central Excise department has arrested a 58-year-old director of a metal scrap trading firm for allegedly committing a GST (Goods and Services Tax) credit fraud to the extent of Rs 26 crore.
North Chennai GST principal commissioner Ravindranath in a press release said, “The director of the firm, arrested on Wednesday, was remanded in judicial custody until January 4. The arrest was made after carrying out a detailed investigation and gathering sustainable evidence". The arrested man was the main beneficiary of the Rs 26 crore GST credit fraud. “He, in collusion with certain fictitious firms, received bogus tax invoices without receiving any goods or services", said the Press release.
It further said,"The fictitious companies issued tax invoices to the arrested person’s business firm without supplying any goods and services for a commission to facilitate fraudulent availment of GST credit to the extent of Rs 26 crore on the invoice value of Rs 150 crore". This is the fifth such arrest made in Tamil Nadu by the department in December with respect to GST credit frauds.
Payment of 1 pc GST in cash only for firms with annual turnover of Rs 6cr
