Kochi: Kerala Goods and Services Tax (GST) department is gearing up to generate revenue by selling 12,850 kg of metal scrap iron seized from a company for falsification of documents.

Earlier, the department imposed a fine of less than Rs 4 lakh on an Alappuzha-based company for forging documents and evading tax payments. Later, the state GST department's Ernakulam division seized tons of scrap metals from the company. 

As the company failed to pay the fine, the department scheduled an auction on November 17 in Kochi. However, after receiving the auction notice, the company owners appealed to the Joint Commissioner of the GST Department. Following this, the auction has been postponed to a separate date.  

The state GST department has taken strict action against those who evade paying tax by forging GST bills and registration. Subsequent raids revealed around 100 similar frauds in the state, 90 per cent linked to scrap business. 

The department has also identified shell companies acting under the guise of scrap business. Illegal trade of Rs 180 crores is estimated to have transpired through these companies between October 2022 and June 2023.