BENGALURU: A city-based businessman who was working as the Managing Director of an automotive company, has been arrested by the Central Taxes department on charges of non-payment of Goods and Services Tax (GST) amounting to more than Rs 15 crore. The arrest, according to sources, is the first made under the provisions of the Central Goods and Services Tax Act 2017.
According to a statement by Ministry of Finance, the tax evasion was discovered based on specific intelligence gathered by the Preventive Unit of the Central Taxes department who found that the accused had charged and collected applicable GST from his customers during August 2017 to May 2018 while not remitting the same to the exchequer. “Contravention of section 132 of the Central Goods and Services Taxes (CGST) act is punishable with imprisonment for a term which may extend to five years with fine and such offences are cognisable and non-bailable,” the ministry statement said.
The statement also said that the accused, when confronted with documentary evidence, had admitted to his lapses and he was consequently arrested around 3.30 pm on July 6. “Further investigation is in progress,” the statement said.