GST Department busted Fake GST Billing Racket; One arrested so far

The State Goods and Services Tax (SGST) department held one person in connection with tax evasion involving crores of rupees discovered in the State’s metal scrap trade.

The culprit, identified as Sandeep Sathi Sudha, was charged under the GST Act’s relevant provisions, according to a department statement.

The department’s intelligence and enforcement wings discovered a racket in the industry where fake GST invoices were being generated to illegally claim input tax credit in statewide raids. The department named it the largest such operation in this sector in Kerala.

As reported, “The raids revealed crores of rupees in tax evasion, according to the department. Tax evasion cartels operate by producing fake GST registrations with identification documents obtained from migrant workers under the guise of providing them with jobs.”

“Based on preliminary information, it was found that GST registration taken in the names of 148 individuals across the State resulted in tax loss of Rs.209 crore, through fraudulent transactions of ₹1,170 crore,” said the department.

‘Operation Palm Tree,’ which includes around 300 officials, was initiated 2 days ago. The raids are still continuing across the residences and business establishments of the tax evaders.

The State GST Commissioner stated that the investigation and strict measures to combat tax evasion cartels will continue in the state.