The GST and Central Excise Department, Chennai North, has arrested a 31-year-old man for GST credit fraud.
The accused, along with two others, allegedly made GST registration for more than 100 business entities using the identity documents of other individuals.
The main accused was plotting to commit GST fraud by forming fictitious companies.
These firms issued tax invoices to various business entities without doing any transaction to facilitate claim of GST credit, and took commission.
The GST on such bogus invoices was paid using input tax credit based on tax invoices received from fictitious companies.
The GST officials conducted searches to gather evidence and produced the arrested in front of the additional chief metropolitan magistrate and remanded him to judicial custody till December 18.
The department is on the look out for his accomplices and all others who were either involved or benefited from the fraud.
Tax consultants involved in these transactions are under investigation for their role in helping the accused.
