Rs 13-crore GST fraud unearthed, two Perumbavoor businessmen booked

THIRUVANANTHAPURAM: The GST department has unearthed a Rs 13-crore input tax credit (ITC) fraud in scrap business. Two persons hailing from Perumbavoor have been booked in the case. They fabricated GST invoices to the value of Rs 125 crore and passed inadmissible ITC of Rs 13 crore, according to the department.

In the early hours of Monday, GST officers accompanied by armed police personnel carried out searches at the residences of Azhar Ali and Rinshad. Certain documents and five mobile phones, all linked with the fake transactions, were seized from their houses. Armed police were called in because the GST officers received a tipoff that the suspects had links with hawala and drug mafias. 

The investigation branch of the GST department had earlier conducted an elaborate preliminary inquiry into the case. It included raids on 12 premises and recording of statement of ten traders. Azhar Ali and Rinshad did not respond to the department’s notice for recording their statements. 

State GST Commissioner Ratan Kelkar has warned people against benami registrations and fake invoice submissions. This is the first time that the GST department is conducting a search with assistance of the armed police. 

State tax officer for Kottayam C G Aravind, STO for Mattanchery Baby Mathai, STO for Alappuzha Rajagopal and deputy commissioner (investigation branch) Johnson Chacko were part of the investigation team. The 14-member police team was led by KAP Battalion I Tripunithura assistant commandant Anson and sub inspector Santhosh Kumar. 

Source From :- ( https://www.newindianexpress.com/states/kerala/2022/jun/21/rs-13-crore-gst-fraud-unearthed-two-perumbavoor-businessmen-booked-2467837.html )