SGST Launches Statewide Crackdown on Scrap Dealers to Curb GST Evasion

Last updated: 07 July 2025


The Commissionerate of State Goods and Services Tax (SGST), Assam, has launched a sweeping search and seizure operation targeting scrap dealers across the state. The operation, which commenced on July 2 and continued through July 3, covered 22 business premises and godowns of suspected tax-evading entities.

The crackdown follows mounting concerns over large-scale tax evasion in the largely unorganized scrap trading sector. According to SGST officials, initial scrutiny revealed widespread suppression of sales and non-payment of due taxes by several dealers.

SGST Launches Statewide Crackdown on Scrap Dealers to Curb GST Evasion

"It has come to our notice that several scrap dealers have not been paying their due taxes. Preliminary verification of records revealed significant discrepancies, indicating large-scale evasion," an SGST official said.

The department has already recovered a total of Rs 90 lakh from three taxpayers during the course of the operation, based on early findings. Investigations are ongoing to determine the complete scale of evasion across the sector.

The Assam SGST Commissionerate emphasized that such stringent actions are aimed at deterring tax evasion and improving overall compliance. "This is a strong message to all taxpayers-those indulging in such malpractices will face strict consequences," the department said in an official statement.

The ongoing drive forms part of the state government's broader strategy to bring unregulated sectors into the tax net and enhance revenue collection under the Goods and Services Tax regime.

Further enforcement actions are likely in the coming weeks as authorities continue to scrutinize records and trace unreported transactions across other high-risk sectors.


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