GST Dept detects Rs.3.53 Crore Tax Evasion by Tobacco and Battery Traders

The Gujarat State Goods and Services Tax (SGST) Department announced on Friday that it had discovered tax evasion totalling Rs. 3.53 crore from B2C (business to consumer) vendors in the tobacco and battery industries, which resulted from sales transactions without the issuing of invoices.

According to a statement issued on Friday by the office of the Chief Commissioner of State GST, the evasion was discovered following raids on November 16 in three Gujarat districts: Ahmedabad, Nadiad, and Dangs.

The highest level of evasion was discovered among four tobacco merchants in Waghai, Dangs district. According to the department, a significant amount of unaccounted stock as well as unaccounted sales were discovered throughout the investigation. Total tax evasion determined was approximately Rs. 2.08 crore.

“The probe in Nadiad revealed that the firm allegedly committed tax evasion by hiding sales and underreporting tax liability. The total tax liability detected exceeded Rs. 53 lakh,” according to the statement.

The investigation into the two battery sellers in Ahmedabad revealed that they were reportedly importing batteries and selling them locally without invoices to avoid taxation. During the operation, undeclared stock and sales were discovered, resulting in an excess tax liability of Rs. 92 lakh.

The statement from the SGST read as, “An appropriate legal action to protect and realise government revenue is being pursued vigorously by the State Tax Department.”