GST Intelligence unit’s top score in 2 years Rs. 2.25 thousand crore notice to Game maker

The Haryana State GST Intelligence Unit has caught many big tax evaders in its two years of existence, the biggest of which was in May when it issued a Show Cause Notice (SCN) for Rs. 1,500 crore state GST liability, in addition to Rs. 750 crore central GST dues, to a Gurugram-based international company that makes gaming and betting platforms.

The notice sent in May accused the company of fraud, deliberate misstatement, and concealment of facts in order to cheat goods and services tax from April 2021 to March 2023.

After failing to provide a sufficient response, the unit seized the company’s assets. Following orders from the Punjab and Haryana high courts, the department has freed 50% of the seized assets for the time being.

We are in the process of filing a review petition, although the investigation is also in progress, said Haryana’s assistant commissioner of sales tax (GST), Ashok K Meena. This is one of several cases where input from the GST commissionerate and CGST teams assisted in detecting input tax evasion of several thousand crore rupees in three years.

Since its inception on March 22, 2021, the GST intelligence unit has directly discovered Rs. 286.9 crore in tax evasion. In ten cases, the recoveries exceeded Rs. 5 crore, with the agency seizing Rs. 77 crore from a contractor. It recouped Rs. 7.4 crore from an ambulance and medical equipment business, Rs. 9.5 crore from a telecommunications company, and Rs. 5.7 crore from a competitor. The input tax credit of Rs. 24 crore was reversed by a highway contractor.

From a Gurugram automotive dealer, the unit recovered Rs. 10.73 crore in taxes, Rs. 2.93 crore in interest, and Rs. 96 lakh in penalties. It was able to recover Rs. 5.57 crore from a manpower contractor and Rs. 2.35 crore from a startup.

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