Chandi Chowk Suits and Saree Dealers under GST Dept lens amid Wedding Season

In Delhi’s famous Chandni Chowk market, lehenga, suit, and saree dealers are being targeted more severely by Central GST authorities as the wedding season approaches. The dealers are being investigated for various malpractices, including GST evasion.

According to sources in the GST department, a large number of these companies avoid paying GST on their outward supply by conducting cash transactions throughout the year, which are most prevalent during the busy wedding season.

Additionally, it has been claimed that these dealers claim input tax credits for transactions conducted through official banking channels by using fake invoices. Two main forms of tax evasion have been identified by the investigation: fraudulently obtaining input tax credits and GST evasion on outgoing supplies.

Many dealers take cash payments for their goods but do not register these transactions in order to avoid being liable for GST, according to sources. When sales quantities spike during the wedding season, this technique is especially common.

The merchants are accused of using fake invoices to claim input tax credits for transactions conducted with cheques or other traceable payment methods, lowering their total GST liability.

These actions not only cause the government to lose a lot of money, but they also provide compliance companies with an unfair advantage. In the past month, numerous such enterprises have been the target of search operations by GST authorities.

In addition to tax evasion, the investigation has uncovered concerning problems with property disputes in Chandni Chowk and the surrounding neighborhoods, including Pusa Road. Despite being served with legitimate eviction notices, a number of dealers who are renting out their residences are apparently refusing to leave.

According to reports, these tenants pay low rents of as little as Rs. 100 a month for premises worth crores, from which they don’t even operate their businesses. Concerns have been voiced by landlords regarding these dealers’ use of coercion to keep these stores.

“There have been reports of threats and property grabbing, but many people have refrained from reporting these incidents to the police out of fear of retaliation The impression that these dealers don’t care about the law has grown as a result of the inaction that has permitted them to operate with impunity. These dealers claim to be market giants and use their clout to blackmail landlords and continue possession to make windfall gains,” Abhishek A. Rastogi, who represents customers before the local police authorities and Delhi High Court for illegal possession of the property, stated.

It is anticipated that the GST authorities will take strict measures against the defaulters in order to guarantee compliance and discourage similar misconduct in the future. But according to sources, resolving property-related grievances might require more extensive law changes as well as strong enforcement measures.