Three arrested for GST evasion of Rs 150 crore

Chennai, March 11, 2023

The investigation unearthed the massive illegitimate clearances made at different stages of the supply chain without payment of GST

Directorate General of Goods and Services Tax (DGGI) has arrested three persons for evading GST of Rs 150 crore while supplying TMT bars without invoices. The arrests came after the Intelligence wing of DGGI conducted simultaneous search operations at premises belonging to three prominent taxpayers involved in the business.

Preliminary investigation revealed that these entities have been indulging in illicit clearance of TMT Bars regularly without invoices and that the payments for such sales were received fully in cash and not declared to the GST authorities.

“The amount involved in such clandestine transactions is Rs 834 crore which has led to GST evasion of Rs 150 crore approximately. These fraudulent activities were being systematically managed from a secret location far away from the registered business premises to escape the attention of the department,” the DGGI said.

The investigation unearthed the massive illegitimate clearances made at different stages of the supply chain without payment of GST. During the search operations, several incriminating documents were recovered from the premises pertaining to these entities.

“Three persons have been arrested. Further investigation is in progress,” the agency said.

[The Deccan Herald]