Kerala GST department makes first arrest in connection with illegal trading of Rs 850 crore

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The Kozhikode unit of the state GST Intelligence Branch (IB) has nabbed the main accused in a large-scale GST scam involving Wayanad, Karnataka, Tamil Nadu, Delhi, and Maharashtra. This is the first arrest by the state tax department since the advent of GST. 

The accused, who has areca palm business, used to take input tax and evade taxes by showing that they are taking registration in the name of family members from various states. Using these documents, they took input tax credit and evaded taxes.

Preliminary investigation has found that tax evasion of around Rs 42 crore has taken place through this. It is estimated that the group has traded around Rs 850 crore over a long period of time. 

The GST registrations were in the names of Murikancherry Sulaiman and his son Ali Akbar and other relatives.

As per the special directive of the Kerala Finance Minister, a special inquiry team headed by the State GST Commissioner was appointed to find out the input tax credit and the Wayanad-based scam was discovered by a team of officials. The accused will be presented before the Economic Court, Kochi.

Read More at: https://www.newindianexpress.com/states/kerala/2020/sep/17/kerala-gst-department-makes-first-arrest-in-connection-with-illegal-trading-of-rs-850-crore-2198296.html

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