The GST and Central Excise Department, Chennai Outer, has arrested a person for GST evasion of about ₹35 crores. The individual, along with accomplices, had floated 36 shell companies and taken GST registration misusing KYC documents of other individuals allegedly for the purpose of receiving and issuing tax invoices worth ₹250 crores 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 ₹35 crores 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.