Tax Department raids Kashipur firms for GST Evasion of Rs.5 crore

The State tax department conducted raids in two firms located in Mahuakheda Ganj industrial area of Kashipur for the goods and service tax (GST) evasion of over Rupees Five crore.

According to officials, both enterprises are in the business of recycling battery scrap, and the department’s squad raided both locations on Tuesday. They stated that the relevant authorities had been watching the transactions of these two companies for the past few days.

It was discovered that for the last three years, both enterprises reportedly reduced their GST liabilities by claiming fake Input Tax Credit (ITC) on bills from non-existent firms situated outside Uttarakhand. According to the officials, the companies also made regular attempts to create electronic way bills on empty vehicles or vehicles carrying other sorts of items to exhibit at the toll plaza in order to prove legitimate purchase of goods in records. According to the officials, both enterprises have committed the offence of GST evasion of over Rupees five crore, incurring the government significant damage.

Given all of these infractions, BS Nagnyal, additional commissioner of the Kumaon Zone Department, led a team that raided both organisations as well as two transport companies that provided them with products services on Tuesday. According to the officials, both firms deposited approximately Rs one crore in GST during the probe on Tuesday. According to the officials, the department is keeping a watch on numerous other firms that may be involved in tax evasion activities in the state and would take harsh action against them as well.