Gujarat GST department finds tax evasion of Rs 3.53 crore after searching seven firms

The Gujarat State GST department conducted an investigation in seven commercial companies and found tax evasion of Rs 3.53 crore, an official said. These companies were hiding income, selling without invoice and reporting tax liability, he added. An official release said searches were conducted on November 16 at seven premises to keep a check on the possible evasion of Goods and Services Tax (GST) by companies in the ‘Business to Consumer (B2C)’ sector in the state.

“These companies include two battery dealers in Ahmedabad, four tobacco dealers in Waghai in Dang district and one salon in Nadiad town in Kheda. A hair salon in Nadiad indulged in tax evasion by concealing actual sales and underreporting tax liability, ” said the release.

The company was charging and collecting tax separately despite having opted for a filing system and the total tax liability incurred was over Rs 53 lakh, the release said.

“Investigation of the two battery dealers revealed that these companies were importing batteries from other countries and selling them without invoice to avoid tax. During the operation, unidentified stocks and unidentified sales were found, resulting in tax payment of over Rs 92 lakh. Total unknown stock and unknown sales were discovered during the investigation of four tobacco dealers in Waghai,” the statement said.

The total amount of tax evasion found during the investigation of these four traders was around Rs 2.08 crore, the release said.