GST fraud: Three arrested in Chennai – Times of India

Chennai News

CHENNAI: The GST and Central Excise Department of Chennai North arrested three people for GST fraud, an official release on Wednesday said. The case booked is against a well-known business entity which sells readymade garments through its retail outlets.
The value of the fraud is around Rs 10 crore.
The fraud related to passing on input credit of GST on the basis of bogus invoices without supplying nor receiving taxable goods and services and without paying GST. Managing director and two other key individuals who had been on the run for more than a month were nabbed by the department.
An official release said the company had received bogus invoices issued by fictitious firms established for just this fraud. These companies would issue invoices as if money was paid for buying goods and also take payment through proper channels. The money would be returned by cash after deducting commission for bogus invoices. The money was ploughed back into the company’s account.
The trio have been remanded in judicial custody, the release said.