GST department unearths Rs 1170 crore tax evasion linked to scrap trade; three arrested

THIRUVANANTHAPURAM: A surprise raid conducted by the GST department unearthed a fraud of 1170 crores committed by creating fake tax accounts focusing mostly on the scrap trade. The preliminary conclusion is that the government suffered a loss of Rs 209 crores through this. As per rumours, this is one of the biggest GST scams in the state.

Three people were taken into custody in the raid conducted in more than 100 centres in seven districts. An investigation has also started against 148 people doubted to be involved in the fraud. Fake bills and fake GST registration documents were seized. Fraud was done by taking fake GST registrations in the name of people not involved in the scrap trade business.

The lightning inspection was carried out from 5 am on Thursday under the name ‘Operation Palm Tree’. The inspection using 300 officials was conducted after receiving information about businesses running through fake bills. The depth of this fraud will be gauged only after further interrogating the fraudsters.

After placing a job advertisement in a newspaper, the fraud takes off by acquiring the Aadhaar number of the applicants and then using it to open a bank account without their knowledge. A fake GST account will also be opened using their address in the name of scrap trade. Fake trade information and returns will be submitted through this account.