Finance Head of a firm arrested for GST evasion to the tune of Rs 88 crore
CGST Mumbai Zone, CGST Navi Mumbai Commissionerate arrested on 01.03.2024, the Head – 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.
M/s Foodlink F&B Holdings India Pvt Ltd, Mumbai is found to have supplied taxable service amounting to Rs. 492 Cr approximately without issuing tax invoice and thereby committing offence as specified in clause (a) of sub-section (1) of Section 132 of the Central Goods and Services Tax Act, 2017.
As per Section 132 of the CGST Act 2017, supply of goods and services without issuing tax invoices is a cognizable and non-bailable offence if the tax amount involved is above Rs. 5 Cr.
The First arrest in the case was made in December 2023, when the Finance Controller of the said company admitted his role in illegal transfer/deposit of cash, generated from 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 fake B2C restaurant sale. This is the second arrest in this case.
The above accused was arrested from Ahmedabad, Gujarat and produced before the nearest Magistrate who granted transit remand. The arrested accused was produced before the jurisdictional Magistrate who has remanded the arrested accused to Judicial Custody till 12.03.2024.