Gujarat GST Department Discovers Rs 3.53 Crore Tax Evasion After Searches at Seven Firms

The Gujarat State GST department uncovered tax evasion totalling Rs 3.53 crore after inspecting seven businesses, an official disclosed on Friday. These companies were hiding real income, selling goods without invoices, and underreporting taxes. The searches took place on November 16 to monitor potential GST evasion by Business to Consumer (B2C) entities in the state.

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Among the businesses investigated were two battery dealers in Ahmedabad, four tobacco dealers in Waghai, Dang district, and a salon in Nadiad town, Kheda. The salon in Nadiad was found to be concealing actual sales and underreporting its tax obligations. Despite opting for the composition scheme, it was separately levying and collecting tax, resulting in a detected tax liability exceeding Rs 53 lakh.

Battery Dealers' Tax Evasion

The investigation into the two battery dealers revealed they were importing batteries and selling them locally without issuing invoices to evade taxes. This operation uncovered unaccounted stock and sales, leading to a total tax liability of over Rs 92 lakh. The authorities discovered significant amounts of unaccounted stock during their inspection.

Tobacco Dealers' Tax Issues

In Waghai, four tobacco dealers were also found guilty of similar practices. Large quantities of unaccounted stock and sales were identified during the investigation. The total tax evasion detected among these four traders amounted to approximately Rs 2.08 crore, according to the official release.

The GST department's actions highlight ongoing efforts to curb tax evasion in Gujarat's B2C sector. By targeting businesses that conceal revenues and avoid proper invoicing, authorities aim to ensure compliance with tax regulations. Such measures are crucial for maintaining fair business practices and ensuring government revenue collection.