The Central Goods and Services Tax (CGST) authorities have arrested the managing director of a copper wire manufacturing company for allegedly evading Goods and Services Tax (GST) worth ₹35 crore by concealing a massive turnover and conducting sales without invoices.
Officials of the Chennai North CGST Commissionerate carried out search operations at the premises of G and M Pvt Ltd, located in Vadalapermbakkam. The company’s managing director, Prakash Kumar, was taken into custody on November 11 after investigators uncovered widespread tax violations.
Sales Conducted Without Invoices; Payments Routed Through Undisclosed Accounts
According to GST officials, the firm had been selling copper wires and copper strips for years without issuing GST invoices. Instead, customers were given mere quotations, and payments were collected in cash as well as through online transfers processed via multiple unregistered bank accounts belonging to different individuals — including employees of the company.
During the search operations, officers recovered a substantial volume of incriminating evidence, including cash slips, quotations, UPI payment records, and bank transaction details. These documents confirmed that sales were executed outside the GST system.
Officials estimate that the company suppressed a turnover of ₹193.50 crore over a period of five years, resulting in GST evasion amounting to ₹34.81 crore.
A senior GST official stated that the managing director admitted to the fraudulent activity during questioning. He was arrested under provisions of the GST Act and has been remanded in judicial custody until December 5.
Part of a Larger Pattern of GST Fraud
The latest arrest follows a similar crackdown in October, where GST officials dismantled another major tax fraud racket involving the issuance of fake invoices worth ₹59 crore. In that case, two individuals were arrested for creating bogus invoices to help beneficiary firms claim ineligible input tax credit (ITC) amounting to ₹10.64 crore. The scheme involved 89 fictitious companies and benefited 19 firms.
The CGST department has intensified enforcement efforts in recent months as part of a nationwide drive targeting tax evasion, fake invoices, and fraudulent ITC claims — issues that have collectively caused significant revenue leakage for the government.
Ongoing Investigation
Authorities indicated that further investigations into the copper manufacturing firm are underway to identify additional accomplices, trace the flow of concealed funds, and verify whether the evasion extends to earlier financial years.
More arrests and recovery proceedings are expected as the department continues its crackdown on GST evasion across key sectors.
Read More: CGST Chennai North Busts Rs. 50 Crore Fake GST Invoice Racket; Key Accused Arrested
