“CGST Arrest: Crackdown on Tax Evasion Scheme”

Introduction:

On March 1, 2024, the CGST Mumbai Zone, CGST Navi Mumbai Commissionerate, made a significant arrest that sent shockwaves through the financial sector. The Head of Finance of M/s Foodlink F&B Holdings India Pvt Ltd, Mumbai, was apprehended for allegedly orchestrating a massive tax evasion scheme. This arrest underscores the seriousness with which authorities are tackling tax evasion and financial fraud in the country.

CGST Authorities Arrest Firm’s Head of Finance

The CGST Mumbai Zone, CGST Navi Mumbai Commissionerate, made a significant arrest on March 1, 2024. The Head of Finance of M/s Foodlink F&B Holdings India Pvt Ltd, Mumbai, was arrested for allegedly supplying taxable services worth approximately Rs. 492 Cr without issuing tax invoices. This evasion amounted to around Rs. 88 Crores in GST.

Alleged Tax Evasion

According to Section 132 of the Central Goods and Services Tax Act 2017, supplying goods and services without issuing tax invoices is considered a cognizable and non-bailable offence if the tax amount involved exceeds Rs. 5 Cr.

Previous Arrest and Investigation

This arrest marks the second in the ongoing investigation. Previously, in December 2023, the Finance Controller of the company admitted to involvement in the illegal transfer and deposit of cash generated through this modus operandi. The cash was deposited into various bank accounts not declared in the GST Registration, avoiding tax scrutiny by splitting it into smaller amounts and falsely labeling it as fake B2C restaurant sales.

Legal Proceedings

The accused was arrested in Ahmedabad, Gujarat, and presented before the nearest Magistrate, who granted transit remand. Subsequently, the accused was produced before the jurisdictional Magistrate, who remanded them to Judicial Custody until March 12, 2024.

Conclusion

The arrest of the Head of Finance of M/s Foodlink F&B Holdings India Pvt Ltd sends a strong message about the government’s resolve to combat tax evasion and financial fraud. This case highlights the importance of compliance with tax regulations and the severe consequences of attempting to circumvent them. It serves as a warning to individuals and businesses engaging in similar illicit activities that they will be held accountable for their actions.