The goods and services tax and central excise department arrested a timber merchant from Pollachi on Tuesday for committing GST fraud amounting to Rs 7.69 crore.
The accused, Ramesh Kumar Patel, is associated with the five timber units in various capacities such as proprietor, partner and director, said K Vijayakrishnavelan, joint commissioner of central GST and central excise. “Patel had floated Thrisul Timber Traders, Sree Ashapura Impex, Ambika Timber Depot, Lakshmi Narayana Timbers Pvt Ltd and Sree Ashapura Saw Mills in Pollachi to commit GST credit fraud. These units indulged in bill trading by way of receiving invoices without supply of goods. He admitted receiving invoices without supply of goods from units and committed GST fraud,” the official said.
The total tax evasion worked out to Rs 7.69 crore, of which Rs 1.16 crore has been realised. Under the GST law, supply of goods without invoice or issue of invoice without goods or availment of credit against the invoices issued without supply of goods is a serious offence attracting arrest if the amount of tax evaded exceeds Rs 2 crore. Since the evasion is worth more than Rs 5 crore, Patel has committed offence under Section 132 (1) (c) of the CGST Act, 2017 that is punishable under Section 131 (1) (i) of the act.
Patel was remanded in judicial custody till March 2.