An extensive tax fraud scheme has been exposed in Kerala, as revealed by an investigation conducted by the GST Department. The probe, focusing on the scrap sector, brought to light fraudulent activities amounting to an estimated Rs 1,000 crore in business conducted through counterfeit GST (Goods and Services Tax) bills.
The state government is believed to have suffered losses of up to Rs 180 crore due to this deceitful operation, which was found to be prevalent in seven districts. Approximately 300 officials from the GST Department conducted inspections, uncovering the use of GST registrations under names unrelated to the sector.
During the inspections, officials discovered falsified bills and identified individuals who acquired deceptive registrations to engage in business using these fraudulent documents. The full extent of the fraud can only be determined once the perpetrators are thoroughly interrogated. There are indications that this may be one of the most significant GST scams in the state.