Surat : The Directorate General of GST Intelligence (DGGI) on Saturday unearthed GST and service tax evasion to the tune of Rs 6 crore by Surat and Vapi based firms engaged in selling iron rods and pipes and a tax consultancy agency.
Official sources said that the Surat unit of DGGI searched five locations of the Surat-based Vrushti Enterprise, engaged in trading of different items such as MS pipes, angles, channels, gudder, patti and steel rods for the involvement in evasion of GST by clandestinely selling the products without payment of GST.
During the search, it was revealed that the firm was only preparing delivery challans and not invoices and that the goods were sold in cash without accounting the same in the records.
Many incriminating documents have been recovered during the search operation, leading to the unearthing of the GST evasion to the tune of Rs 2.5 crore.
Sources said that the owner of the firm accepted the evasion and that he paid the part amount of total evasion.
In the second case, the Vapi unit of the DGGI raided Noma Infrastructure Private limited in Vapi, engaged in providing various taxable services.
The officials found incriminating documents during the search operation and that service tax evasion to the tune of Rs 3.33 crore was unearthed.
The DGGI officials arrested one Kundan Kumar Gupta, director of Noma Infrastructure Private limited and that he was produced in the court, where his bail was rejected by the Vapi court.
A senior officer said, “We have been scrutinising the documents seized from both the firms in Surat and Vapi. The initial evasion of GST and Service tax is to the tune of Rs 6 crore. However, after the scrutiny, the amount may increase.”