GST fraud of Rs 1100 crore in state; exchequer incurs loss of Rs 200 crore, opposition leader seeks CBI probe

THIRUVANANTHAPURAM: Opposition leader V D Satheesan said that a fraud of Rs 1100 crore happened in the state last financial year in connection with fake GST registration. Action should be taken against the officials involved in the fraud. Satheesan also demanded a CBI investigation in the fraud. He made this demand at a press meet convened at Cantonment House.

His words
A shocking fraud has surfaced in connection with GST transactions. In the financial year 2024-25, a single fraud group made transactions worth Rs 1100 crore under fake names. This gang has made GST registration in the names of ordinary people without their knowledge. GST registration can be made in anyone's name. Presently, while doing GST registration, someone else's bank account can be given. In such a way, the fraud was committed by giving the bank account of this gang in the GST registration taken in the name of ordinary people. GST and income tax liabilities will be on them.

The state suffered a GST loss of Rs 200 crore in this incident alone. The GST Intelligence in Pune found this out and informed the state government. The state government did not take any action other than canceling all fake registrations. The intelligence in Pune informed the state government about the fraud in February 2025. The GST has not yet investigated which group is behind the fraud. They have not demanded a police investigation either.

The state government has not informed the people about this. It looks the state government has abandoned the lost Rs 200 crore. Apart from this, there are more than a thousand other false registrations. The common people are being cheated in various ways. GST can be made after collecting the property details from Sanjay portal of the local self-government.