HYDERABAD: The chairman-cum-managing director of a popular resort on the city outskirts was arrested on Wednesday by the Director General of GST Intelligence (DGGI) and remanded to judicial custody till January 18, in connection with GST evasion to the tune of Rs 13.81 crore. Five bank accounts connected to the business operations of the resort were ‘provisionally attached’.
According to DGGI, the resort has been collecting GST from their customers/ guests and retaining the same with them, besides diverting the tax amounts so collected for private purposes, instead of paying it to the government, ever since July 2017. During investigation, CMD admitted that GST was collected but not paid to the government. “The arrest and remand is for not co-operating with the investigation. If the case is confirmed, the amount will be recovered towards tax liabilities,” said an official on condition of anonymity.
The GST law stipulates that all the amounts representing GST collected from service recipients have to be credited into government treasury and that periodical returns are filed every month. The resort management deliberately evaded GST and chose to not pay the tax. Collecting GST but failing to pay to government beyond a period of three months, where the amount of tax involved is over `5 crore, is a cognizable and non-bailable offence which could attract jail term up to 5 years.