KOCHI: The Kerala GST intelligence wing has arrested the director of a Thrissur-based multi-level advertising and marketing (MLM) firm for alleged tax evasion to the tune of Rs 126 crore. This, officers mentioned, is the largest GST evasion case detected by the state GST division.
Prathapan Kolatt Dasan, director of Highrich On-line Shoppe Pvt Ltd, primarily based in Neruvissery, Arattupuzha, was arrested by the GST intelligence Kasaragod unit on December 1. When contacted, Rameshan Kolikara, senior intelligence officer, intelligence wing, Kasaragod, state GST, confirmed the arrest however offered no additional particulars. Nevertheless, sources mentioned it’s unusual that the GST division is but to launch information of Prathapan’s arrest. “Usually, the GST division points press statements promptly in tax evasion circumstances of over Rs 5 crore. It appears there may be an try to cowl up one thing,” mentioned the supply.
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Prathapan was remanded in judicial custody by the Ernakulam Extra Chief Judicial Justice of the Peace (Financial Offence) Court docket. On November 24, the GST intelligence Kasaragod unit raided the workplace of Highrich On-line Shoppe in Arattupuzha primarily based on data of GST evasion. Following the search, it was revealed that the corporate suppressed a turnover of Rs 703 crore and that its tax legal responsibility was Rs 126.54 crore.
Primarily based on the investigation, firm administrators Prathapan and Sreena Okay S had been summoned to the workplace of deputy commissioner (intelligence) Kerala GST in Thrissur on November 30.
Nevertheless, quickly after the search, the corporate paid Rs 1.5 crore and Rs 50 crore on November 24 and 27, respectively. Kerala GST additionally has imposed a 15% penalty on the agency. Nevertheless, with over Rs 75 crore in pending legal responsibility, Prathapan was arrested.
An officer with the GST intelligence wing, who wished to stay nameless, mentioned the division’s preliminary evaluation is that the corporate had operations in different states and the turnover is more likely to be extra. It’s learnt that the corporate’s administrators have admitted to the offence. In response to Kerala GST intelligence officers, Highrich Shoppe is an e-commerce platform, primarily based on MLM mannequin.
In the meantime, steps initiated by Kerala GST after detecting the case drew flak inside the division. “Normally, accounts of the corporate and the accused are frozen to bar any additional transactions, together with withdrawal of cash. Right here, although the case was detected on November 24, no steps had been taken to freeze the financial institution accounts,” mentioned an insider.