Latest News on the Lucrative Scrap Business in Kerala: Updates on Kerala News and India News

The scrap trade industry in Kerala is booming, generating over Rs 5000 crore in revenue annually. However, a recent crackdown by the state Goods and Services Tax (GST) Department has revealed a troubling trend of tax evasion within the sector.

Dubbed “Operation Palm Tree,” the crackdown targeted 148 traders’ homes and establishments across the state. After months of monitoring and audits, the department uncovered tax evasion amounting to Rs 250 crore from sales returns totaling Rs 1400 crore. One trader alone was found to have orchestrated fraudulent transactions worth Rs 65 crore.

The modus operandi of these fraudsters involves deceiving migrant laborers during the registration process to acquire identity documents for entity registration. They then engage in high-value transactions, exploiting input tax credits to evade taxes before absconding. This results in significant losses for the government in terms of tax revenue.

While some traders have started paying taxes and fines, others who owe between Rs 2 to 5 crore in taxes may face arrests if fines remain unpaid. The GST Commissioner has ordered continued inspections and actions against offenders to curb tax evasion within the scrap trade industry.

Overall, the crackdown on tax evasion within the scrap trade sector highlights the importance of compliance with tax regulations and the government’s commitment to ensuring fair and transparent business practices.