GST Raid on Textile Company in Odisha; Recovered Cash worth of Rs.5.68 Crore

The State CT and GST Enforcement Wing raid on a textile company in Odisha’s Boudh district led to the recovery of whopping Rs 5.68 crore in cash.

A undercover investigation was launched in response to claims that some textile merchants were selling items without issuing tax invoices in order to avoid paying taxes. The State CT and GST Enforcement Wing conducted simultaneous raids at M/s Singhal N Singhal, located at Hospital Road in Boudh, and M/s Shree Binayak Textiles, located at PWD Road in Boudh, at their places of business, godowns, and residential locations based on the findings of the preliminary investigation.

Along with the police officials, three teams totaling 18 officers from the State CT & GST Enforcement Wings are working on the operation.

During the course of the inspection, the investigating teams are checking stock accounts, purchase and sale information, and information stored on computers, laptops, and other devices. Additionally, they are keeping track of the physical goods that is present in their godown and office spaces for cross-checking with their books of accounts. The contents of the laptop, computer, and documents that are still unaccounted for have been seized for further examination.

Additionally, M/s Shree Binayak Textile paid back Rs 5.68 crore throughout the course of the inspection. This money was transferred into the company’s bank account and temporarily attached to stop any debit entries from the account. Despite having a very high turnover, an investigation showed that these taxpayers paid relatively little difference tax on their sales.

More research was being done.