“The director of the firm, arrested on Wednesday, was remanded in judicial custody until January 4.

The arrest was made after carrying out a detailed investigation and gathering sustainable evidence,” said North Chennai GST principal commissioner Ravindranath in a news release.

The arrested man was the main beneficiary of the Rs 26 crore GST credit fraud. “He, in collusion with certain fictitious firms, received bogus tax invoices without receiving any goods or services. The fictitious companies issued tax invoices to the arrested person’s business firm without supplying any goods and services for a commission to facilitate fraudulent availment of GST credit to the extent of Rs 26 crore on the invoice value of Rs 150 crore,” the release further said.

This is the fifth such arrest made by the department in December with respect to GST credit frauds.