The GST and Central Excise Department, Chennai Outer has arrested one person who is a Tax-Consultant, aged about 32 years, from Pernambut, Vellore District for committing a massive GST fraud, by issuing fake invoices to the extent of Rs. 274 Crores and passing on illegal and unlawful Input Tax Credit to the extent of Rs.22.12 Crore. The arrest was made after carrying out a detailed investigation and conducting multiple searches to gather evidence.
The said person was arrested on 26.01.2021 and produced before the Honorable Economical Offences Judge II, Egmore, Chennai.
The case against the arrested person is that he along with some accomplices has taken GST registrations by misusing KYC documents of other persons. The arrested person was also acting as Tax-consultant to prepare all the documentation, including invoices for these fictitious companies. The purpose of floating such fictitious companies is to commit GST credit frauds. The fictitious companies issued tax invoices to various business entities without actual supply of goods or services to facilitate, for a commission, 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 some other fictitious companies opened by the associates of the arrested person.
In the process, GST credit fraud of Rs. 22.12 Crore on Invoice Value of Rs. 274 Crore was committed by the arrested person along with his accomplices. The department also identified the business entities that had availed fraudulent GST credit passed on by the companies floated by the arrested person and his accomplices. The investigation is also focused on if any other tax consultant is involved with the arrested person in committing such frauds. Further investigation is ongoing.
For all Goods and Service Tax (GST) related queries, the Goods and Services Tax (GST) Helpdesk of the GST and Central Excise Department located at its Anna Nagar Headquarters office may also be contacted by all the taxpayers and consumers either in person or by calling any of these numbers: 26142850, 26142851, 26142852 and 26142853 or by writing to Sevakendra-outer-tn@gov.in.
This is stated in a press release issued by Shri. B. Jayabalasundari, Additional Commissioner.
