Gujarat GST Authorities Reveal Rs 2.55 Crore Tax Fraud in Pan Masala Sector
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Synopsis
The Gujarat GST Department has uncovered significant tax evasion in the pan masala trade, intercepting vehicles transporting unaccounted goods and revealing a GST evasion estimated at over Rs 2.55 crore.
Key Takeaways
- Gujarat GST uncovers Rs 2.55 crore tax evasion.
- 42.12 lakh unaccounted pouches detected.
- Legal actions initiated against offenders.
- Significant increase in GST evasion cases noted.
- Improved detection methods being implemented.
Ahmedabad, Feb 6 (NationPress) The Gujarat State GST Authorities have intercepted six vehicles carrying unaccounted pan masala and tobacco pouches within the Ahmedabad district on February 4, prompting a detailed investigation.
The operations, driven by specific intelligence, uncovered a staggering 42.12 lakh unreported pouches, with an estimated GST fraud exceeding Rs 2.55 crore, as reported by officials on Thursday.
The department's initiatives zeroed in on the illicit transportation of sensitive goods, especially those moved without proper invoices, faulty documentation, or inadequate paperwork.
During physical verification, officials discovered a substantial amount of undeclared products, heightening concerns regarding extensive tax fraud in the pan masala and tobacco industry.
Legal actions are now in progress to reclaim lost government revenue and to penalize the individuals implicated. From the financial years 2021-22 to 2024-25 (up to October 31, 2024), central tax officers in Gujarat have recorded 12,803 cases of Goods and Services Tax (GST) fraud, resulting in the arrest of 101 individuals under Section 69 of the CGST Act, 2017.
The state has observed a notable surge in GST fraud throughout this timeframe. In just the first seven months of FY 2024-25 (April to October 2024), fraud reached Rs 12,066.8 crore, exceeding the Rs 10,109.7 crore logged during the entire FY 2023-24.
This signifies a staggering 515 percent increase compared to the Rs 1,959.74 crore fraud reported in FY 2019-20. Despite these alarming statistics, recovering the evaded taxes poses a significant challenge. In the last four and a half years, merely 24 percent (around Rs 9,557.22 crore) of the total evaded sum has been reclaimed.
Officials attribute the rise in detected fraud cases to enhanced detection techniques, policy updates, and improved surveillance systems. Strategies such as data analytics to track filing patterns and the adoption of biometric verification linked to Aadhaar authentication for GST registrations are being utilized to mitigate fraud.
