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Managing Director of Metal Scrap Firm Arrested for Rs 26 Cr GST Credit Fraud in Chennai

Representational photo

Representational photo

“The person was arrested on Wednesday and produced before the additional chief metropolitan magistrate, Egmore. He was remanded in judicial custody until January 4. The arrest was made after carrying out a detailed investigation and gathering sustainable evidence,” said North Chennai GST principal commissioner Ravindranath.

The GST and Central Excise department in North Chennai has arrested a 58-year-old director of a metal scrap trading firm for committing a GST credit fraud to the extent of Rs 26 crore.

“The person was arrested on Wednesday and produced before the additional chief metropolitan magistrate, Egmore. He was remanded in judicial custody until January 4. The arrest was made after carrying out a detailed investigation and gathering sustainable evidence,” said North Chennai GST principal commissioner Ravindranath.

The director is the main beneficiary of the Rs 26 crore GST credit fraud. “He in collusion with certain fictitious firms received bogus tax invoices without receiving any goods or services. The fictitious companies issued tax invoices to the arrested person’s business firm without supplying any goods and services for a commission to facilitate fraudulent availment of GST credit to the extent of Rs 26 crore on invoice value of Rs 150 crore,” said Ravindranath.

This is the fifth such arrest made by Department in December with respect to GST credit frauds. Earlier, on December 4, a 31-year-old man from Periamedu was held for committing a GST credit fraud of Rs 33 crore. Later, in another case against a well-established business entry from Chennai city that sells readymade garments, the managing director and two other key individuals were arrested for committing a GST credit fraud of Rs 10 crore, he said.

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first published:December 24, 2020, 14:15 IST