GST Evasion of ₹6.5 Crore Detected in Raids on 41 Traders

The Gujarat State Tax Department has reportedly detected suspected Goods and Services Tax (GST) evasion of around ₹6.54 crore following coordinated searches at 41 premises linked to 27 traders operating across different parts of north and central Gujarat.

The enforcement action was initiated on July 8 following intelligence inputs that certain traders were allegedly carrying out retail sales without issuing proper tax invoices. According to the report, some transactions were allegedly being recorded through informal handwritten slips, locally referred to as kacchi chiththi, rather than through regular accounting and invoicing systems.

The businesses covered by the action were reportedly engaged in the trading of products including pan masala, bidis, cigarettes, areca nuts, tobacco, lime and grocery items. The searches were carried out at premises located in several cities and towns, including Ahmedabad, Deesa, Palanpur, Patan, Becharaji, Radhanpur, Visnagar, Unjha, Mehsana and Bavla.

During preliminary verification, tax officials reportedly found significant differences between the physical stock available at certain premises and the inventory recorded in the books. These discrepancies are suspected to be connected with unaccounted sales, non-issuance of tax invoices and suppression of taxable turnover.

Based on the preliminary findings, the department has estimated the suspected tax liability at around ₹6.5 crore. Further examination of books of account, stock records, transaction documents and other material gathered during the searches is expected to determine the final tax liability and any consequential action under the applicable GST law.

The operation reflects continued enforcement efforts by state tax authorities to identify businesses allegedly suppressing taxable turnover through unbilled sales and informal transaction records. CA Sansaar