Business running in the name of Dead Wife; GST Team Detects Tax Evasion

A late businessman conducted business in Partaval, Maharajganj for 11 months. Bought Rs 11.73 lakh from his company using a 13 e-way bill. Throughout the inquiry, the GST team discovered tax evasion and mismanagement. Not only that, but the company was administered in the name of the deceased’s wife. A fine of five lakh rupees has been issued for discovering irregularities in its stock.

The SIB team of the Goods and Services Tax had received information that large-scale tax evasion was taking place in a garment shop in Paratawal, Maharajganj. For the previous six months, the GST team collected evidence at the aforementioned shop on festivals and other special events.

Doing business in a deceased person’s name, along with another businessperson, is an economic infringement, according to a GST official. Furthermore, if thousands of rupees were bought and sold by another merchant under the company’s name. In collecting the sum from the deceased, the company can decline in exchange. The problem may then involve forgery and fraud.

When the business was investigated on Monday by Deputy Commissioner Sunil Verma, it was discovered that the shop’s registration was in the name of the proprietor, Shamshul Haque. He died in March 2022, but no legal action was pursued by his family.

The company carried on under the previous name, address, and account number. Apart from Gorakhpur, the company has produced e-way bills by booking bulk clothing from vendors in Lucknow and Kanpur.

Around the same time, another institution was discovered in the same location. Another company was running under the name of Shamshul Haq’s wife, Najra Khatoon. There was no physical proof of stock being stored in the shop alongside the sale during the period of the examination in this firm. This company has been fined Rs 5 lakh by GST.

Grade-I Additional Commissioner Vimal Kumar Rai stated that two Maharajganj enterprises were being watched. A company was operating in the deceased proprietor’s name. The second firm was operating under the name of the deceased’s widow. The appropriate action was taken in accordance with the rules.

A crowd gathered as the GST team arrived to the businessman’s premises in Partaval for action. Six automobiles were used by the crew to investigate on behalf of GST. When the GST team realised they were surrounded, they sought assistance from the district authority. By sending teams, the DM and SDM assisted the GST team.