In a major crackdown on GST evasion, the Directorate General of GST Intelligence (DGGI) has unearthed a Rs 700 crore tax fraud in Rajasthan, exposing a large-scale scam in the scrap trading and iron goods industry. The Jaipur Zonal Unit of DGGI carried out raids across 15 locations, including Jaipur, Bhilwara, Sikar, and Udaipur, leading to the arrest of seven individuals involved in the racket.
Massive Tax Evasion in Iron & Steel Industry
During the raids, officials discovered records indicating the illegal supply of 13 lakh tons of iron and steel goods without proper GST compliance. The estimated market value of these untaxed transactions stands at a staggering ₹4,000 crore.
Authorities confirmed that multiple iron goods manufacturing firms were found evading Goods and Services Tax (GST) by selling products without issuing invoices. The operation involved fake companies and fraudulent transactions, allowing businesses to bypass tax payments.
Key Arrests in the GST Fraud Case
DGGI officials detained seven individuals from different locations, including:
- Ghasilal Chaudhary - Jaipur
- Kesardev Sharma - Sikar
- Arun Jindal - Udaipur & Bhilwara
- Two transporters involved in moving untaxed goods
How the GST Scam Operated
- Fake Companies & Bogus Billing - Fraudsters created shell companies to generate fake invoices and evade GST.
- Undisclosed Warehouses & Godowns - Authorities identified hidden storage units where iron and steel goods were kept before being sold without proper documentation.
- Widespread Network - Initial investigations suggest links to Haryana and Punjab, indicating a cross-state tax evasion racket.
DGGI's Intensified Crackdown on GST Fraud
This massive bust underscores DGGI's aggressive stance against GST evasion in high-risk industries. The ongoing probe aims to track the entire supply chain of fraudulent transactions and identify other businesses involved in similar tax violations.
With India tightening tax enforcement, the scrap trading and steel sector are now under increased scrutiny to curb illicit financial activities and ensure tax compliance.
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