GST and Central Excise Department, Chennai Outer has arrested two persons, one aged about 34 years from Tondiarpet, Chennai and another aged 46 years from Villivakkam, Chennai, for committing a massive GST fraud, by issuing fake invoices to the extent of Rs.776 crore and passing on illegal and unlawful Input Tax Credit, to the extent of Rs.118 Crore. The arrests were made after carrying out detailed investigations and conducting searches at several premises, to gather incriminating evidence.

The said persons were arrested on 04.12.2020 and produced before the Honorable Economical Offences Judge 1, Egmore, Chennai.

The arrested duo, along with some accomplices, have taken GST registration in the name of other persons using fabricated/forged KYC documents. One of the arrested persons was also acting as a consultant to prepare all the documentation, including invoices for the fictitious firms. Such fictitious companies were floated to commit GST credit frauds. These fictitious companies issued tax invoices to various business entities without supplying any goods or services, for a commission, and facilitated fraudulent availment of GST credit by these business entities. GST on such bogus invoices was also paid using illegal input tax credit, based on fraudulent tax invoices received from some other fictitious companies opened by the accomplices of the arrested persons. In the process, GST credit fraud of Rs.118 Crore on Invoice Value of Rs.776 Crore was committed by the arrested persons along with their accomplices. The department also identified the business entities who had availed fraudulent GST credit passed on by the companies floated by the arrested persons and those companies which passed on fraudulent credit to the companies floated by the arrested persons and their accomplices. The investigation is also focused on if any tax practitioner has guided the arrested persons in committing these frauds.

Further investigation is ongoing.

While the GST department is committed to non-adversarial tax administration and assists honest and law-abiding taxpayers in complying with the tax laws, it is in data-driven pursuit of criminal gangs and fraudsters who mastermind in GST credit frauds. The department also encourages whistleblowers to come forward with credible information to unmask all the beneficiaries of such credit frauds along the supply chain. The department is committed to protect the identity of all such whistleblowers.

The GST and Central Excise Department in Chennai is eager to provide advice and guidance to all taxpayers and other citizens, concerning their GST related formalities, procedures and practices, and to help increase voluntary tax compliance levels and consumer awareness.

For all Goods and Services 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[at]gov[dot]in, according to a press release issued by Shri. Manasa Gangotri Kata, Additional Commissioner, Chennai

 

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