The State tax department conducted raids in two firms located in Mahuakheda Ganj industrial area of Kashipur for the goods and service tax (GST) evasion of over Rs five crore. Both firms are involved in the business of battery scrap recycling and the department’s team raided both premises on Tuesday, as per the officials. They said that the authorities concerned were monitoring the transactions of these two firms for the past few days.
It was revealed that both firms allegedly adjusted their GST liability by taking advantage of bogus Input Tax Credit (ITC) under the guise of bills of non-existent firms located outside Uttarakhand for the past three years. The officials claimed that the firms also made regular attempts to make electronic way bills on empty vehicles or vehicles carrying other types of goods to show them at the toll plaza to depict genuine purchase of goods in records. Prima facie, both firms have committed the offence of GST evasion of over Rs five crore causing heavy loss to the government, said the officials.
Considering all these violations, additional commissioner of the department of Kumaon Zone, BS Nagnyal formed a team that raided both firms as well as two transport companies providing them goods services on Tuesday. The officials said that both firms also deposited GST of nearly Rs one crore during the investigation on Tuesday. The officials said that the department is keeping an eye on several other firms which might be involved in tax evasion activities in the State and strict action will be taken against them too.
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