Scrap dealer arrested for tax evasion
The directorate general of GST intelligence has arrested a scrap dealer from the city for selling goods without an invoice and getting input tax credit without the supply of goods, causing loss to the government exchequer to the tune of 16.7 crore. Officials from the directorate carried out search operations targeting scrap dealers in Coimbatore. During the search, they seized various documents. A follow-up search took place in Kerala, resulting in the identification of three non-existent companies from which invoices amounting to 34.44 crore were issued. The proprietor having a unit at Madukkarai in Coimbatore availed input tax credit of 6.2 crore. The officials also unearthed the details of the supply of scrap to the tune of 58.5 crore without invoices, resulting in the evasion of tax to the tune of 10.5 crore.