The Special Investigation Branch (SIB) of the Commercial Tax Department has uncovered a massive GST evasion case involving a firm operating in the Ghaziabad industrial area. Acting on specific intelligence inputs, officials raided the premises of the firm, which is engaged in the manufacturing and trading of gear, bearings, gearboxes, machinery parts, tools and environmental equipment.
According to Joint Commissioner (SIB) Jaismin Jain, the firm was found guilty of carrying out unauthorised outward supplies without maintaining proper documentation. "The inspection revealed that the company failed to maintain a stock register and could not produce valid e-way bills for goods in transit," said Jain. "Shockingly, several staff members were unaware of the business operations or even the identity of the proprietor."
The inspection team also found a significant discrepancy of Rs 3 crore between the TDS remitted to various government departments and the turnover declared by the company. Preliminary findings suggest that the firm may have evaded taxes to the tune of Rs 10 crore.
Crucial digital evidence, including a laptop with transaction records, was seized during the raid. The records indicate that the company was generating fake invoices and routing them through a network of shell companies to inflate expenses and suppress actual turnover.
"The department is now conducting a detailed investigation into the extent of the fraud. Legal proceedings are underway and the tax liability and penalties under the GST Act are being assessed," added Jain.
The crackdown highlights the department’s intensified efforts to tackle tax evasion and fraudulent activities in the industrial sector. The authorities have reiterated their commitment to using data analytics and intelligence-led inspections to ensure better compliance and protect government revenue.
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