The Uttarakhand State Tax Department conducted raids on two firms in the Mahuakheda Ganj industrial area of Kashipur for Goods and Service Tax (GST) evasion of over Rs 5 crore, as per news reports.
Companies Adjusted GST Liability with Bogus ITC
The State tax department revealed that both firms involved in the business of battery scrap recycling allegedly adjusted their GST liability by availing of bogus ITC in the guise of bills of companies based out of Uttarakhand only on paper. The firms had been doing this for the past three years. They also made regular attempts to make e-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. The officials claimed that prima facie, both firms have committed the offence of GST evasion of over Rs 5 crore, causing heavy loss to the government.
Raids on Companies and Transport Services
The 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 transportation services. The officials said that both firms also deposited GST of nearly Rs 1 crore during the investigation.
Keeping a Watchful Eye on Tax Evasion
The Uttarakhand State Tax Department is keeping a watchful eye on several other firms that might be involved in tax evasion activities in the state. The department has warned that strict action will be taken against those firms found guilty of tax evasion.
Conclusion
The Uttarakhand State Tax Department conducted raids on two firms located in the Mahuakheda Ganj industrial area of Kashipur, revealing that both firms were allegedly involved in GST evasion of over Rs 5 crore. The firms were involved in the business of battery scrap recycling and had been adjusting their GST liability by taking advantage of bogus ITC. The department is keeping a close eye on other firms that might be involved in tax evasion activities in the state and has warned that strict action will be taken against those found guilty.