Thiruvananthapuram, Oct 1 (PTI) Leader of Opposition in the Assembly V D Satheesan on Wednesday alleged that a 'GST fraud' worth Rs 1,100 crore was carried out in Kerala by a gang of fraudsters during the financial year 2024-25, and demanded a CBI investigation.

Addressing reporters, he said registrations were obtained in the names of common people without their knowledge, and transactions were carried out through the fraudsters’ accounts.

"The fraudsters had done transactions to the tune of Rs 1,110 crore. In this case alone, the loss to the exchequer was Rs 200 crore. But the government carried out no further probe to find the perpetrators," Satheesan alleged.

He accused the state government of merely cancelling the registrations after receiving information about the cheating from the GST Intelligence Department in Pune. "Even those who had been victimised by the fraud are yet to be informed about it," he said.

Satheesan demanded stringent action against state GST officials who allegedly neglected the matter. "As per unofficial information, over 1,000 such fake GST registrations are still active in the state, through which transactions are being carried out," he said.

Alleging that GST administration in Kerala was in a "deplorable state", he pointed out that no action had been taken to make GST data registration foolproof. "Not only tax fraud but data theft is also taking place," he alleged.

"It was just the tip of the iceberg... As it is a case with inter-state ramifications and connected to the Integrated Goods and Services Tax (IGST), a CBI probe should be carried out into it. That is our demand," Satheesan claimed.

He also called for complete legal protection for those "victimised by fraudsters" in the case. PTI LGK SSK KH

GST fraud allegations prompt call for federal probe and stronger registration safeguards to protect victims. Allegations describe a large-scale GST fraud involving fraudulent registrations obtained in others' names and transactions routed through those accounts, with the state response limited to cancelling registrations without identifying perpetrators or informing victims; the piece urges a Central Bureau of Investigation inquiry due to inter-state and IGST-connected implications, demands accountability for alleged administrative neglect, stronger registration and data safeguards, and legal protection for victims.