Thiruvananthapuram: The state govt has launched a major crackdown on GST evasion by constituting a special investigation team (SIT) to probe complaints received by chief minister V D Satheesan’s office and allegations reported in the media.The five-member team, headed by deputy commissioner Brijesh C, has been empowered to investigate suspected tax evasion and trace money trails, including by seeking information from banks, financial institutions, other govt agencies, e-commerce platforms and logistics operators. The SIT also comprises state tax officer Rex Alex K and assistant state tax officers Dina C F, Sunil Kumar N C and Ajeesh H.Sources said the complaint against private firm Reporter Broadcasting Corporation (RBC), amid allegations of GST evasion in transactions linked to the ongoing Lionel Messi controversy, was likely to be probed by the SIT.The govt order issued last Tuesday said complaints of a “grave and serious nature” had been received through the chief minister’s office, news reports and other sources. It warned that large-scale tax evasion, if left unaddressed, could cause “substantial loss of revenue to the state exchequer” and undermine the confidence of taxpayers who comply with the law.The SIT has been directed to conduct its inquiries on “war-footing” and in a time-bound manner. It can summon and verify files, accounts, registers, e-way bills, tax returns, bank statements and other physical or electronic records of taxpayers under investigation. It can also obtain information from statutory authorities and any other person or entity, besides banks, govt departments, e-commerce and logistics operators. The SIT can requisition records from jurisdictional tax offices and any other office or agency holding them.The SIT will also probe a recent case in Ernakulam in which Rs 4.5 crore in cash seized from a private firm was reportedly returned by the GST department. Questions have been raised over the circumstances in which the money was released and whether the officer concerned acted in collusion with the firm. More significantly, the amount was reportedly refunded through the firm’s bank account, raising questions about whether the department’s intervention effectively converted suspected unaccounted cash into legitimate banking funds.A senior GST department official said the new mechanism was being viewed as a priority intervention to ensure prompt investigation of tax evasion complaints. “While in the opposition, the chief minister had repeatedly taken up issues relating to GST evasion and revenue leakage. Now that he is also in charge of finance, examining such complaints has become a top priority. The objective is also to ensure that every credible complaint is examined thoroughly, those responsible are held accountable and there is no avoidable loss of revenue to the public exchequer,” the official said.The team has been directed to maintain strict confidentiality in its investigations. It will submit its inquiry reports to the secretary to the chief minister through the state GST commissioner.
