Director of stevedore companies held for ₹13.88 crore GST evasion

A director of Thoothukudi-based two stevedore companies has been arrested in connection with alleged GST evasion to the tune of ₹13.88 crore.

Based on intelligence inputs, officers of the Commissionerate of GST and Central Excise, Madurai conducted investigation and found that two Thoothukudi-based companies involved in extending stevedoring services, steamer agent services and freight forwarding services had evaded GST to the tune of ₹13.88 crore.

The modus operandi involved in this tax evasion is that the said companies had collected GST from their clients but failed to remit it to the Government by suppressing the value of goods and service tax in their GST returns resulting in the evasion of GST to the tune of ₹9.56 crore and also has fraudulently availed Input Tax Credit of ₹4.32 crore without any proper invoices / bills.

Subsequently, cases were registered against the two companies for this crime, which is punishable with imprisonment up to 5 years with fine, if the value of tax evasion exceeds ₹5 crore.

The officers of the CGST and Central Excise Commissionerate on Thursday arrested the director of both the companies and produced him before the Additional Chief Judicial Magistrate, Madurai who remanded him in judicial custody till April 29.

Further investigations are on, an official statement said.

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