Man held for Rs 107 cr GST fraud

The case against the accused was that he along with some others had taken GST registration in the name of other persons on non-existing addresses using doctored documents, said a release from GST, Chennai Outer Commissionerate.

The purpose of floating fictitious companies is to commit GST credit fraud. These companies issued tax invoices to business entities without supplying any goods or service, for a commission and fraudulent availment of GST credit. GST on such bogus invoices was also paid using input tax credit based on fraudulent tax invoices received from some other fictitious companies opened by associates of the arrested.

In the process, GST credit fraud of Rs 107 crore on an invoice value of Rs 740 crore was committed by the accused and his accomplices.

The arrested did not cooperate with the probe but was nabbed after sustained surveillance. The department is on the lookout for at least three of his associates.

The release said the department has identified all the business entities who had availed fraudulent GST credit passed on by the companies floated by the arrested man, and those companies which had, in turn, passed on fraudulent credit to the companies floated by the arrested person and his accomplices.