Chennai man arrested for ₹107-crore GST fraud

Our Bureau Chennai | Updated on September 16, 2020 Published on September 16, 2020

The GST and Central Excise Department, Chennai Outer on Wednesday said it has arrested a 56-year old person from the Kodungaiyur area of Chennai for committing a GST credit fraud of ₹107 crore.

The arrest was made after carrying out detailed investigation and conducting searches to gather evidence.

According to a press release issued by the Principal Commissioner GST and Central Excise, Chennai Outer, the arrested person along with some others had registered in the name of other persons on non-existent addresses, using doctored documents.

“The purpose of floating such fictitious companies is to commit GST credit frauds. These fictitious companies issued tax invoices to various business entities without supplying any goods or services to facilitate, for a commission, fraudulent availment of GST credit by these business entities,” the release said.

The department said GST credit fraud of ₹107 crore on invoice value of ₹740 crore was committed by the arrested person along with his accomplices.

The department, which is on the lookout for the accomplices, said it has identified all the business entities who had availed fraudulent GST credit passed on by the companies floated by the arrested person, and those companies which had in turn passed on fraudulent credit to the companies floated by the arrested person and his accomplices.

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Published on September 16, 2020
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