GST Department detects Rs.2.55 Crore Tax Evasion in Pan Masala Trade:

GST Department detects Rs.2.55 Crore Tax Evasion in Pan Masala Trade The Gujarat State GST Department intercepted six cars transporting undeclared pan masala and tobacco pouches in the Ahmedabad district on February 4 and conducted an investigation. The raids, based on particular intelligence, led to the detection of 42.12 lakh unaccounted pouches, with an estimated GST evasion of over ₹2.55 crore, officials announced on Thursday. The department's operations focused on the illegal transfer of sensitive commodities, particularly those transported without invoices, with faulty invoices, or with incorrect documentation. Physical inspection revealed a huge amount of undeclared goods, raising suspicions about widespread tax evasion in the pan masala and tobacco trades. Legal proceedings are in underway to retrieve government revenue and penalize those responsible. Between the financial years 2021-22 and 2024-25 (until October 31, 2024), central tax authorities in Gujarat registered 12,803 cases of evasion of GST, resulting in the arrest of 101 individuals under Section 69 of the CGST Act, 2017. The state has seen a huge surge in GST evasion throughout this time. In the first seven months of FY 2024-25 (April-October 2024), evasion totalled Rs.12,066.8 crore, surpassing the Rs.10,109.7 crore registered in FY 2023-24. This represents a 515% increase over the Rs.1,959.74 crore evasion reported in FY 2019-20. Despite these data, recovering evaded taxes remains a struggle. Over the last four and a half years, just roughly 24% (or Rs.9,557.22 crore) of the entire evaded amount has been recovered. Authorities attribute the increase in detected evasion cases to better detection procedures, policy changes, and improved surveillance systems. To combat evasion, initiatives such as data analytics to track return filing habits and biometric verification connected to Aadhaar authentication for GST registrations are being implemented.