In yet another crackdown on GST evasion, the Gujarat State GST department has uncovered a major tax fraud involving traders in the artificial flower business. The operation, conducted on December 5, targeted 11 businessmen involved in the sale of artificial flowers and decorative items in Ahmedabad.
During the raid, officials discovered that these traders had evaded Rs 2.5 crore in taxes through unaccounted sales and undisclosed stock, resulting in a total liability of Rs3.5 crore, including tax irregularities. The operation reveals the increasing complexity of GST scams in the state, particularly among traders dealing in goods that are difficult to track.
The tax evasion involved the manipulation of sales records, with traders failing to report a significant portion of their transactions, allowing them to evade the applicable GST. This is part of a broader effort by the GST department to clamp down on such fraudulent activities and recover lost revenue for the state.
In a separate but related investigation, a scrap dealer, Pradhyumansinh Chavda, was arrested in Odhav, Ahmedabad, for his involvement in generating bogus bills for the purchase of metal scraps. Chavda was found to have claimed input tax credits on non-existent transactions, leading to a Rs50 crore evasion of GST. Following the uncovering of the scam, Chavda was arrested and placed in one-day remand.
These incidents highlight the growing prevalence of GST scams in Gujarat, with the department stepping up its efforts to identify and arrest those involved in such illegal activities. Authorities have urged businesses to maintain transparency and proper documentation to avoid being targeted in such investigations.
