1 arrested for Rs 35 crore evasion by GST & Excise dept

A person for GST evasion of about Rs 35 crore has been arrested by the GST and Central Excise Department, Chennai Outer. The individual, along with accomplices, had floated 36 shell companies and taken GST registration misusing KYC documents of others individuals allegedly for the purpose of receiving and issuing tax invoices worth Rs 250 crore without actual receipt or supply of goods.
This was done for the purpose of fraudulent receipt and passing on of input tax credit of about Rs 35 crore along the supply chain. This helped several manufacturers and service providers to evade GST evasion of an equivalent amount which would have otherwise come to the exchequer as tax revenue, according to a statement. The arrest was made after carrying out detailed investigation and several searches to gather evidence. The person was arrested on September 27 and remanded in judicial custody till October 9. Further investigation is on.