GST racket unearthed

Chandigarh, July 24

The UT Excise and Taxation Department today unearthed a racket of state GST evasion on Rs 61 crore turnover by six firms.

Acting on specific intelligence, six teams were constituted for conducting searches on business premises of the six firms on the directions of UT Excise and Taxation Commissioner Mandip Singh Brar, said RK Chaudhary, Assistant Excise and Taxation Commissioner (AETC). This was the biggest search ever conducted by the Excise and Taxation Department, he said.

Chaudhary said the department conducted searches at the Mani Majra-based M/s SR Agencies, M/s Global Home Solutions, M/s Polytech, M/s Euro Sales and M/s Amba Agencies, all in Gobindpura, and Rajat Enterprises, Thakur Dwara.

He said all firms dealt in items such as pipes and tiles and partners and owners of the firms were relatives or connected with each other.

All six firms carried out sales of Rs61 crore during the GST period, but did not pay tax to the government and adjusted it against manipulated input tax credits. “All firms have not been filing their GSTR-3B monthly tax returns from February 2020 onwards,” he said.

The business premises of five firms — M/s Rajat Enterprises, M/s Polytech, M/s Euro Sales, M/s Amba Agencies and M/s Global Home Solutions — were found closed and after an inquiry, it came to light that no such firms existed at the given addresses and only M/s SR Agencies business premises was found. The other firms were being run from the business premises of M/s SR Agencies, said Chaudhary.

After preliminary investigations, officials found that firms generated e-way bills using motorcycles, three-wheelers and even ambulance for showing transportation of goods. Incriminating documents of the firms have been taken into possession from the business premises of M/s SR Agencies. “The investigation is still in progress as a few more firms are involved in this racket,” he said.