CGST Commissionerate arrested Finance Head of a Firm for GST evasion of Rs.88 Crore

The CGST Navi Mumbai Commissionerate arrested the Head of Finance of a firm for GST Evasion to the tune of approximately Rs.88 Crores on 01.03.2024.

Finance Head of a Firm arrested for GST evasion of Rs.88 Crore

Reetu | Mar 5, 2024 |

CGST Commissionerate arrested Finance Head of a Firm for GST evasion of Rs.88 Crore

CGST Commissionerate arrested Finance Head of a Firm for GST evasion of Rs.88 Crore

The CGST Navi Mumbai Commissionerate of CGST Mumbai Zone arrested the Head of Finance of a firm for supplying taxable service amounting to Rs.492 Cr approximately without issuing any tax invoice and thereby indulging in the GST Evasion to the tune of approximately Rs.88 Crores on 01.03.2024.

M/s Foodlink F&B Holdings India Pvt Ltd, Mumbai was found to have delivered taxable services totalling roughly Rs.492 Cr without issuing a tax invoice, hence committing an offence under clause (a) of sub-section (1) of Section 132 of the Central Goods and Services Tax Act, 2017.

According to Section 132 of the CGST Act 2017, supplying goods and services without issuing tax invoices is a cognizable and non-bailable violation if the tax amount exceeds Rs.5 crore.

The first arrest in the case occurred in December 2023, when the Finance Controller of the aforementioned company admitted to his role in the illegal transfer/deposit of cash generated by the stated modus operandi in various bank accounts not declared in GST Registration, by breaking it into smaller amounts to avoid tax scrutiny and depositing in the name of a fake B2C restaurant sale. This marks the second arrest in this matter.

The above culprit was arrested in Ahmedabad, Gujarat, and brought before the closest Magistrate, who granted transit remand. The arrested accused appeared before the jurisdictional Magistrate, who ordered him to judicial custody until March 12, 2024.

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