The Madhya Pradesh GST department has detected a major case of GST evasion to the tune of more than ₹ 8,100 crore. The investigation revealed that the evasion was carried out through 4,909 bogus business establishments spread across the country.
The tax department got the initial clues of the evasion during a month-long investigation of e-way bills of an establishment in Indore. A detailed analysis of the data revealed that the 4,909 establishments under investigation showed a turnover of about ₹ 29,000 crore in GST returns during the financial years 2021-22 and 2022-23. The investigation detected evasion of ₹ 8,103 crore.
The tax evasion was done by taking undue advantage of input tax credit of GST through bogus business and fake bills. The GST department of Madhya Pradesh is now conducting a detailed investigation of tax evasion in coordination with the authorities concerned of other states and will also register a first information report (FIR) against the accused.
This is a major case of GST evasion and it is important that the authorities take strong action against the accused. This will send a strong message to others who may be thinking of engaging in similar activities. It is also important to ensure that the loopholes in the GST system are plugged so that such cases of evasion do not happen in the future.
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