Rajasthan GST fraud: ₹50 crore evasion busted in Jaipur, almond trader arrested
Synopsis
A Jaipur almond trader allegedly ran a ₹50 crore GST evasion operation across three financial years — selling without invoices, buying outside the books. Rajasthan's Enforcement Branch-II has arrested Mahesh Chand Gupta under Section 69 of the GST Act, with more names likely to surface as the JSM Industries trail is unpacked.
Key Takeaways
Mahesh Chand Gupta , proprietor of JSM Industries , arrested for alleged GST evasion exceeding ₹50 crore .
The fraud spans financial years 2022-23, 2023-24 and 2024-25 , centred on unaccounted almond trade.
Arrest made under Section 69 of the GST Act, 2017 by Rajasthan's Enforcement Branch-II .
Special Court (Economic Offences), Jaipur remanded the accused to judicial custody on 3 June .
Investigation continues to identify other individuals and firms linked to the racket.
The Enforcement Branch-II of Rajasthan's Commercial Taxes Department has arrested an almond trader for allegedly evading Goods and Services Tax (GST) of more than ₹50 crore, in one of the state's biggest tax fraud crackdowns this year. The accused, Mahesh Chand Gupta, was produced before the Special Court (Economic Offences), Jaipur on Wednesday, 3 June, and remanded to judicial custody.
How the fraud was uncovered
According to the department, Gupta operated a firm named JSM Industries, through which large-scale taxable supplies were allegedly made without issuing tax invoices and without paying the applicable GST. Verification of documents, digital records and audit reports established that the firm had purchased, stored and sold goods without recording the transactions in its official books.
Three years of off-the-books almond trade
Investigators found that across the financial years 2022-23, 2023-24 and 2024-25, the firm carried out substantial trading activity — primarily the purchase and sale of almonds — outside the books of account. These clandestine transactions allegedly resulted in GST evasion exceeding ₹50 crore, causing significant loss to government revenue.
Arrest under Section 69 of GST Act
Based on the evidence collected, Enforcement Branch-II arrested Gupta under Section 69 of the Goods and Services Tax Act, 2017, which empowers tax authorities to detain persons accused of large-scale evasion. The department said a detailed investigation is underway to identify other individuals or firms linked to the case.
The enforcement team
The operation was executed by a team comprising Sandeep Kumar Chaudhary (Assistant Commissioner), Rajesh Kumar Yadav (Assistant Commissioner), Sunil Dutt Sharma (State Tax Officer) and Rahul Natani (State Tax Officer), under the direction of Babu Singh Chauhan, Additional Commissioner (Administration), Enforcement Branch-II, and the supervision of Harendra Chaudhary, Joint Commissioner, Circle-A.
What happens next
The Commercial Taxes Department has signalled that more arrests and firm-level action could follow as the trail of unaccounted almond transactions is mapped. Officials reiterated their commitment to dismantling networks engaged in unaccounted business and safeguarding state revenue. The next hearing in the special court will determine the trajectory of Gupta's custody and any further enforcement steps.
Point of View
But this case underscores how commodity trade — especially in high-margin dry fruits — has become a soft underbelly of GST compliance in north India. A ₹50 crore leak from a single firm over three years suggests the audit triggers in Rajasthan's enforcement architecture only fired after the fact, not in real time. The real test now is whether the department traces the buyer side of these off-book sales — because every unaccounted supply has an unaccounted recipient. Without that, arrests become symbolic rather than systemic.
NationPress
21 Jul 2026
Frequently Asked Questions
What is the Rajasthan ₹50 crore GST fraud case about?
It involves alleged GST evasion of more than ₹50 crore by JSM Industries, a firm run by Mahesh Chand Gupta, primarily through unaccounted purchase and sale of almonds. The Enforcement Branch-II of Rajasthan's Commercial Taxes Department arrested him on 3 June and the Special Court remanded him to judicial custody.
Under which law has the accused been arrested?
Mahesh Chand Gupta has been arrested under Section 69 of the Goods and Services Tax Act, 2017, which empowers tax authorities to arrest persons accused of large-scale evasion. He has been remanded to judicial custody by the Special Court (Economic Offences), Jaipur.
How was the GST evasion detected?
Verification of documents, digital records and audit reports revealed that JSM Industries had purchased, stored and sold goods without recording the transactions in its official books. The firm allegedly made large-scale taxable supplies without issuing tax invoices over three financial years.
Will more arrests follow in the JSM Industries case?
The Commercial Taxes Department has said a detailed investigation is underway to ascertain the involvement of other individuals and firms connected to the case. Further enforcement action is likely once the supply chain of the unaccounted almond trade is mapped.
