GST Raids Uncovered Millions of Tax Evasion: Flower Seller & Transporter Surrender in Millions

Following the BJP government’s formation in Chhattisgarh, the state GST department cracking down on tax evaders. Raids reveal significant amounts surrendered, with a flower seller and transporter among those surrendering millions.

GST Raids in Chhattisgarh: In the wake of the new BJP government’s establishment in Chhattisgarh, the state’s GST department has intensified efforts to combat tax evasion. Continuous raids are uncovering substantial sums being surrendered, with recent cases involving a flower seller and a transporter surrendering millions in tax.

Enhanced Enforcement Measures

The GST department has bolstered its enforcement wing with new officers to clamp down on tax evasion effectively. Rigorous inspections are not limited to business premises but extend to e-way bills along major routes across the state.

Crackdown on Tax Evasion

Recent raids have yielded significant results. Two vehicles were found carrying goods without proper documentation, resulting in the recovery of Rs. 24 lakh and the seizure of four vehicles. The government is particularly targeting individuals using bogus firms to transport goods illegally.

Strategic Approach

The department has adopted a forward-backward analysis strategy to trace the source of transported goods effectively. Raids conducted based on e-way bills have led to the recovery of substantial tax amounts, such as Rs. 50 lakh from Roop Lakshmi Private Limited and Rs. 30 lakh from an undisclosed warehouse.

Utilization of Modern IT Tools

Modern IT tools are aiding in detecting tax theft and identifying suspicious transactions. The department uncovered a network of fake businesses claiming Rs. 45 crore in fake Input Tax Credit (ITC) in the fiscal year 2022-23 alone. Action is being taken against these bogus firms, with Rs. 20 crore worth of ITC blocked.

Ongoing Investigations

Enforcement actions are ongoing, with Rs. 2.9 crores recovered on the spot from Kandahari Transport in Korba. Investigations into this case are still underway, with more tax expected to be collected. Additionally, the GST raid squad targeted an event manager and decorator known as Flower Queen in Raipur, who failed to pay taxes on decorations subject to an 18% GST. The Flower Queen has since deposited Rs. 60 lakh.

Emphasis on Transparency

Officials emphasize the importance of IT-based investigations to ensure transparency and combat tax evasion effectively. Such operations are expected to become regular as the department intensifies efforts to enforce tax compliance.

In conclusion, the Chhattisgarh GST department’s relentless pursuit of tax evaders underscores the government’s commitment to ensuring fair and transparent tax practices. Through enhanced enforcement measures and the utilization of modern IT tools, the department aims to curb tax evasion effectively and uphold the integrity of the tax system.

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