Hyderabad: Chairman-cum-Managing Director of a popular resort in the city was arrested in connection with GST evasion to the tune of Rs 13.81 crore on Wednesday.

An official release said the resort was collecting GST from their customers and guests but not remitting it to the government since July 2017.

It is mandatory that all amounts representing GST collected from service recipients be credited into to the government. Periodical returns should also be filed every month.

The resort’s management has not paid any tax and the prescribed returns, with a deliberate intention to evade GST, the release said, adding that the management of the resort has a dubious history of not paying applicable service tax in the past.

Several notices have been issued by the Service Tax Department in the past, it added. Pending investigation, the CMD of the resort was arrested and remanded to judicial custody till 18 January.