The Headquarters Preventive Unit (Express Cargo Manifest) of Chennai North GST and Central Excise Commissionerate arrested a 36-year-old man from Kodungaiyur for alleged GST fraud of ₹20.35 crore.
The arrested man allegedly floated 11 fake companies and passed on illegal, fraudulent and ineligible input tax credit of ₹20.35 crore with taxable value of over ₹118.17 crore, according to a release. The fictitious companies issued tax invoices to various other business establishments, for a commission, to facilitate claim of GST credit.
The accused was produced before the additional chief metropolitan magistrate, Egmore, and remanded in judicial custody till September 21.
The arrested man was under investigation in another case of fake input tax credit of ₹263 crore, and he had been evading investigation.
