The GST commissionerate has arrested Dilip Kumar, 45, for availing input tax credit using fake companies and thereby causing tax revenue loss to the extent of several crores of rupees. Kumar is the second person to be arrested in the city by the commissionerate this month for GST evasion.
Kumar used to deal with steel, chemicals, plastics, electronic goods and leader goods. In all these dealings, Kumar used the input tax revenue without moving any goods. “In continuation of further investigations on the issue of fake GST invoices racket, the officers of headquarters preventive unit and central excise commissionerate were keeping a watch on the activities of bill traders,” said a press release.
The officers noticed that Dilip Kumar was availing input tax credit in fake companies based on fake invoices received and passed on the same to other companies so that they can avail input tax credit without receipt of goods. “We are in the process of quantifying the tax revenue loss for the government. It will take at least two more days to know the revenue loss,” said a senior GST official.
After the confession of the offence, Kumar was arrested on Tuesday. “It is evident that he has received fake GST invoices on the commodities and passed on the same with an intention of fraud. Further investigation is in progress,” said the official.
The department has intensified action on such fraudsters to curb the evasion of GST by bill traders in future. On November 19, a commodities trader and dealer Danaram from Sowcarpet in north Chennai, was arrested for evading GST to the tune of Rs 61 crore by opening multiple registrations.
Danaram was a trader in several businesses and is the mastermind of activities who was arrested as he was running the racket with others. Danaram is in Puzhal prison and is learnt to have operated businesses with revenues of Rs 352 crore.
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