Kerala’s GST Fraud Crackdown Fails to Launch: 14 Arrests, Zero Convictions
Prosecution Gridlock and Ineffective Arrests
The state’s highly-publicized anti-GST fraud campaign has stalled, with not a single chargesheet filed despite 14 arrests made in high-value tax evasion cases (each involving over ₹5 crore) since 2021. All suspects arrested under Section 69 of the GST Act have secured bail, effectively rendering the high-profile operations merely symbolic gestures.
The Systemic Failure: Lack of Legal Team
The primary reason for the failure is the government’s inability to appoint a panel of prosecutors. Although a special court for GST offenses was formally designated in Ernakulam in August 2022 to fast-track economic offense trials, the court has yet to receive a single case file because case files are frozen without a legal team to proceed.
Contrast with Central Government Enforcement
Kerala’s zero prosecution record contrasts sharply with the Centre’s efforts. The Central Board of Indirect Taxes and Customs (CBIC) identified 9,369 bogus entities and made 331 arrests nationwide between May and July 2023. While Kerala reported 135 fraudulent registration cases worth ₹162 crore, it has reported no recoveries and no prosecutions, weakening the state’s deterrence against fraud networks.
Source:- Times of India