KOCHI: The Directorate General of GST Intelligence (DGGI) has detected a huge evasion of GST (Goods and Services Tax) after its probe revealed that a cartel of units in Kerala's steel industry issued invoices valued at about Rs 400 crore to ultimate beneficiaries.
It is suspected that Kairali Steels & Alloys (Kairali TMT), a leading supplier of steel bars in Kerala with factories in Palakkad and Salem, is the major beneficiary of the racket, a release by the DGGI said here on Wednesday. The DGGI said through the evasion, the cartel passed on fake input tax credit of GST amounting to Rs 43 crore.
The Kochi Zonal Unit of Central GST Intelligence also arrested Humayoon Kalliyath, executive director of Kairali Steels & Alloys (P) Ltd. "Humayoon Kalliyath, proprietor of Humayoon & Associates, who is the mastermind of the scam is also the executive director of Kairali Steels & Alloys (P) Ltd., Palakkad, and it is suspected that Kairali Steels & Alloys is the major beneficiary of the racket," said the release issued by Mathew M Jolly, principal additional director general, Directorate General of GST Intelligence, Kochi zonal unit.
"Officers of the DGGI units at Thiruvananthapuram, Kochi and Kozhikode conducted simultaneous search operations at various premises in different parts of Kerala and recovered a number of incriminating documents. Preliminary investigations reveal that the cartel issued fake invoices valued at about Rs 400 crore to ultimate beneficiaries thereby passing on fake input tax credit of GST amounting to about Rs 43 crore," the DGGI release said.
Humayoon Kalliyath was arrested by Jijo Francis, intelligence officer, DGGI Thiruvananthapuram Regional Unit under Section 69 of CGST Act, 2017. "The offences committed by him are punishable under Section 132 of the CGST Act, 2017, and are cognizable and non-bailable. He was produced before the Additional Chief Judicial Magistrate, Thiruvananthapuram, and remanded to judicial custody for 14 days.
The investigation team includes senior intelligence officers Hareendran K, Shahul Hameed A, Balagopal G, Kurian P Mathew, intelligence officers Vaishak R, Vaishakan Ashok Kumar Datti, Manju Krishnadas and Jinu. The investigation was supervised by Krishnenthu Mintoo Raja, deputy director, DGGI (TRU) under the guidance of Additional Director Nasser Khan.
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