Jamshedpur: A Jodhpur-based trader was arrested for the evasion of goods and services tax (GST) worth around Rs 10 crore in city on Tuesday evening, making it the first such arrest related to GST evasion in Bihar-Jharkhand.

Dinesh Vyas (51) was nabbed by the officers of the Directorate General of GST Intelligence (Jamshedpur regional unit) after preliminary probe revealed that the accused used to generated fake invoices of goods and services that he actually didn't purchase and used those to avail input tax credit, leading to a huge revenue loss to the exchequer.

While paying tax on the output, input credit allows manufacturers to avail credit/rebate for tax that they have already paid on inputs.

"This is the first arrest under the provisions of the CGST Act 2017 in Bihar and Jharkhand. Vyas has been forwarded to Ghaghidih Central Jail late on Tuesday evening. The accused is the mastermind behind the entire conspiracy along with a few others. Some more arrests can happen in the days to come," deputy director GST intelligence (Jamshedpur regional unit) Gautam Kumar said.

Sources in GST intelligence said after the preliminary probe, Vyas, who is a director of M/s Shrimali Industries Private Limited and proprietor of M/s Vaibhav Enterprises and M/s Shrimali Alloys, was summoned to Jamshedpur. During interrogation, Vyas couldn't give satisfactory replies. He was arrested and presented in the special court of Jamshedpur civil court Y.C. Verma and remanded to judicial custody for a period of 15 days.

"We will take him in remand soon to find out the involvement of others in the racket," Kumar added.