*Major action by State GST against tax-evading businessmen*
Raipur, June 2, 2025/ An investigation was conducted by the State GST Department Jagdalpur at the business premises of M/s Arihant Steel, Narayanpur district, Narayanpur on May 31. When the investigation team reached the spot, it was observed that no account books or software related to the business, such as Tally, were maintained at their business premises, whereas it is mandatory to keep all account books at the business premises as per the provisions of GST. The businessman stated that all bills are issued by the tax consultant. Due to this, the possibility of tax evasion has become even stronger. Further investigation revealed that from the year 2021-22 to the year 2024-25, the total turnover was more than approximately 16 crore rupees, but only 43 thousand rupees of tax was paid in cash till the current period.
At the same time, when the e-way bills were checked, it was found that goods worth 8.21 crore rupees were purchased from the year 2021-22 to the year 2024-25, but no e-way bills were issued for the supply of goods. This shows that the goods were sold to the general consumer, but the bills were sold to other businessmen to give the benefit of bogus input tax, due to which the central government as well as the state government suffered a huge loss of tax revenue. During the investigation, the businessman, while admitting his mistake/error, voluntarily expressed his intention to pay a tax of 10 lakh rupees, but the officers of the GST department demanded that the businessman present account books and other documents in support of the quantity of stock available at the business premises (estimated value 90 lakh rupees). No information and documents were presented by the businessman. The businessman tried to put pressure on the investigation team by gathering some acquaintances, media personnel and businessmen. Due to the uncooperative attitude of the businessman and for detailed investigation of tax evasion, the business premises were sealed in the presence of the local police until further action.