Two arrested for GST credit fraud

The GST and Central Excise Department, Chennai Outer, has arrested two persons, both aged around 32, from Vellore, for committing GST credit fraud of ₹35.72 crore.

According to a press release, the arrests were made after carrying out a detailed investigation and conducting about 50 searches to gather evidence. The persons were arrested on November 13 and produced before the Additional Chief Metropolitan Magistrate, Egmore. They were remanded in judicial custody until November 27.

The case against the arrested persons is that they, along with some others, took GST registration in the name of others, after buying identity-related documents from these persons, either by making cash payments or by supplying groceries to them. The purpose of floating such fictitious companies was to commit GST credit frauds. The fictitious companies issued tax invoices to various business entities, without supplying any goods or services, to facilitate a commission and the fraudulent availment of GST credit by these business entities. GST on such bogus invoices was also paid using input tax credit, based on fraudulent tax invoices received from other fictitious companies, opened by associates of the arrested persons. In the process, GST credit fraud of ₹35.72 crore on invoice value of ₹401 crore was committed by the arrested persons, along with their accomplices, the release said.

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Printable version | Dec 2, 2021 7:35:34 PM |

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