GST of Rs. 8 Crore Evaded by Firms Trading in Electrical Goods in Haridwar

After the instructions of State Tax Commissioner, Sonika. The chief inspector from the headquarters conducted raids on four firms in Haridwar included in the trade of electrical goods, LED lights and lithium batteries..

An earlier inspection of GST returns, and e-way bill data showed that these companies were likely involved in fake transactions. They were claiming huge amounts of Input Tax Credit (ITC) by showing sales and purchases among themselves, even though they had very little real business activity. The electricity department had already cut off their power because they hadn’t paid their bills, yet the companies were still issuing e-way bills worth crores of rupees.

Investigators discovered that the firms had no records of goods movement in their gate registers. On further checking, they found that another firm based in Sitarganj, which had been closed for two years, was still showing transactions worth crores in connection with the Haridwar firms.

Data from e-way bills showed no signs of actual vehicle movement or toll plaza crossings. This confirmed that there was no real supply of goods and that only circular trading and fake billing had taken place.

The investigation also found huge gaps between the sales and purchases shown on paper and the actual stock present. The main items involved were lithium batteries and integrated circuits. Based on the findings, a clear case of GST evasion of more than Rs. 8 crores has been detected.

The raid was on till late at night with teams seizing electronic devices and business records from the firm for detailed inspection. A total of 10 teams, consisting of around 30 officers, took part in the operation.

The Tax Commissioner has ordered strict action against firms who were found misusing Input Tax Credit (ITC) benefits through fake billing and circular trading. However, information about such firms is also being shared with other government agencies for further investigation.