In a significant crackdown on GST evasion, the Directorate General of GST Intelligence (DGGI) has uncovered a massive Rs 700 crore tax fraud in Rajasthan, exposing a widespread scam within the scrap trading and iron goods industry. The Jaipur Zonal Unit of DGGI carried out raids across 15 locations, including Jaipur, Bhilwara, Sikar, and Udaipur, leading to the arrest of seven individuals involved in the racket.
During the raids, DGGI officials found records that revealed the illegal supply of 13 lakh tons of iron and steel goods without proper GST compliance. The estimated market value of these untaxed transactions is a staggering Rs 4,000 crore.
Authorities confirmed that multiple iron goods manufacturing companies were involved in evading GST by selling products without issuing invoices. The operation relied on fake companies and fraudulent transactions, enabling businesses to bypass tax payments.
Seven individuals were detained during the operation, including:
Ghasilal Chaudhary
Kesardev Sharma
Arun Jindal
Two transporters involved in moving the untaxed goods
This large-scale bust highlights DGGI’s aggressive approach to tackling GST evasion in high-risk industries. The ongoing investigation aims to trace the entire supply chain of fraudulent transactions and identify other businesses involved in similar violations.
As India intensifies its tax enforcement efforts, the scrap trading and steel sectors are now under heightened scrutiny to curb illicit financial activities and ensure greater tax compliance.
