New Delhi, September 13: The CBIC on Friday said it has suspended some CGST officials in Bengaluru who have been arrested by the city police for alleged extortion charges. On September 11, Bengaluru City Crime Branch arrested four Central GST officials based on a complaint of kidnapping and extortion filed by a businessman at Byappanahalli police station of Bengaluru East division.

The arrested include a superintendent rank officer apart from inspector and senior intelligence officer rank staffers of the GST. In a post on X, the Central Board of Indirect Taxes and Customs (CBIC) said as per media reports, it has been reported that some CGST officials in Bengaluru have resorted to alleged extortion in violation of the laws of the land. "The officers involved have been immediately suspended," it said. Karnataka Health Minister Dinesh Gundu Rao Writes to PM Narendra Modi To Reconsider 18% GST on Health Insurance Ahead of Council Meeting on September 9.

Central Board of Indirect Taxes and Customs Suspends CGST Officials

It further said that the CBIC is in touch with police authorities who got the remand of these officers arrested by them. "Based on the outcome of the investigation in the matter, further action will be taken. CBIC follows a zero-tolerance policy in cases of official misconduct in its endeavour to establish a transparent and trade-friendly tax administration," the CBIC added. Separately, the Enforcement Directorate has also registered a money laundering case against four arrested Goods and Services Tax (GST) officials who allegedly extorted Rs 1.5 crore from the businessman here by impersonating as ED sleuths, official sources had said on Wednesday.

Sections of the Prevention of Money Laundering Act (PMLA) have been pressed against the accused taking cognisance of the FIR filed by the Bengaluru City Crime Branch against them, the sources said. The four went to the businessman for a "fake" raid claiming that they were from the ED and allegedly extorted Rs 1.5 crore from him by "threatening" him, the agency sources said. 54th GST Council Meeting: Industry Experts Welcome Significant Resolutions About Goods and Services Tax Announced by FM Sitharaman.

They will be questioned after the ED gets their custody and the agency will look for their assets that can be attached under the anti-money laundering law, they said. The businessman had alleged that about a week back about four to five persons came to his house and forcefully took him around the city in two vehicles and also took him to his office and there they demanded a huge amount of money.