CBI arrested Two GST Officials for Demanding Bribe of Rs.4 Lakh

The Anti-Corruption Bureau (ACB) of the CBI in Chennai has filed a complaint against two GST and Central Excise Officers in Dharmapuri for allegedly demanding a bribe of a few lakh rupees from the owner of a steel and hardware shop in the area.

On October 26, the agency filed an FIR against Annadurai, superintendent, and Karthikeyan, inspector, in the GST and Central Excise departments in response to a complaint filed by Vediyappan, proprietor of NVN Steel and Hardware, demanding a bribe of Rs.4 lakh and another Rs.10,000 monthly for the scrutiny of his GST returns.

The complainant stated that Annadurai first invited him to come to his office with his auditor in August of this year, claiming that there was a mismatch in his company’s input tax credit for GST reporting. The complainant’s auditor was instructed to resubmit the statement in two days.

A few days later, the officials informed the complaint that his company was claiming 100% tax credits but not paying taxes on the profits made and that the sales invoices were fake. When they denied the claim, the GST officials stated that the entire tax liability for FY22 and FY23 would be Rs.1.5 crore and demanded bribes in exchange for not issuing notices against the firm, according to the CBI.

The complainant and his auditor asked them to reevaluate, and the bribe was decreased to Rs.4 lakh. Despite repeated demands, the complainant refused to pay the bribe, and GST officials threatened to issue a notice. Vediyappan filed a petition with the ACB and CBI on October 7.

According to the CBI’s preliminary inquiry, there was evidence that Annadurai and Karthikeyan committed an offence punishable under Section 7 of the Prevention of Corruption Act.

The state government approved the filing of the complaint on October 22, according to the CBI.