GST evasion of 43 Crore detected at Kairali Steels & Alloys in Kerala; Director arrested

The Directorate General of GST Intelligence (DGGI), Thiruvananthapuram Regional Unit, has arrested a person in connection with an alleged cartel of steel industry units engaged in GST evasion.

“Preliminary investigation reveals that the cartel issued fake invoices valued at 400 crore to the ultimate beneficiaries, thereby passing on fake GST input credit amounting to approximately 43 crore,” according to the release.

“The mastermind of the scam, Humayoon Kalliyath, proprietor of Humayoon & Associates, is also the executive director of Kairali Steels & Alloys (P) Ltd., Palakkad was also arrested by the Kochi Zonal Unit of Central GST Intelligence, and it is suspected that Kairali Steels & Alloys is the major beneficiary of the racket,” said Mathew M Jolly, principal additional director general, Directorate General of GST Intelligence, Kochi zonal unit.

“Officers from the DGGI units in Thiruvananthapuram, Kochi, and Kozhikode conducted simultaneous searches at various locations throughout Kerala, recovering a number of incriminating documents.” “Preliminary investigations reveal that the cartel issued fake invoices valued at approximately Rs 400 crore to ultimate beneficiaries, thereby passing on fake GST input tax credit of approximately Rs 43 crore,” according to the DGGI release.

Jijo Francis, intelligence officer, DGGI Thiruvananthapuram Regional Unit, arrested Humayoon Kalliyath under Section 69 of the CGST Act, 2017. “His offences are punishable under Section 132 of the CGST Act, 2017, are cognizable, and are non-bailable.” He appeared before the Additional Chief Judicial Magistrate in Thiruvananthapuram and was remanded in judicial custody for 14 days.