The State Goods and Services Tax (SGST) department has detected tax evasion to the tune of ₹2.17 crore during inspections carried out in quarry and metal crusher units across the State.
The intelligence wing of the SGST department carried out Operation Prithvi on June 28 simultaneously in 20 quarries/crusher units based on information collected by the government and the vigilance. Many of the units were found to have disclosed a lower amount than their actual turnover.
Under the earlier Kerala Value Added Tax system, most quarries followed a compounding system where they remitted a fixed tax based on the size of their crusher units, irrespective of the turnover. No such system exists under the GST. Quarry owners engage in tax evasion by exploiting this loophole, according to the department.
Inspections by its intelligence wing will be strengthened in quarries/crusher units in the coming days, the department said.
