Officials of the Central GST Commissionerate of Coimbatore have detected ₹9.7 crore tax evasion and arrested one person in this regard.
According to a press release, the officials initiated investigation by searches and summon proceedings against MSK Associated Traders and found that the unit was into bill (invoice) trading by issuing invoices without supply of goods to various units through intra and inter-State trade. These were mostly to scrap dealers or traders. The tax amount in the fake invoice was availed of as input tax credit by the traders who received the fake invoices on commission basis without receipt of actual goods. The invoices were used for further bill trading or tax payment of supply of non-duty paid goods procured without bills from the open market.
M. Sampath Kumar, proprietor of MSK Associated Traders admitted to the office and was remanded in judicial custody on October 29. The total tax evasion worked out to ₹9.7 crore. Since evasion involved was more than ₹5 crore, it was a non-bailable office and hence, he was arrested under GST Act. Further investigation against connected scrap dealers and end users, who received invoices without actual supply, was under progress, the release said.
