State GST dept detects Rs 45cr tax evasion by four contractor firms
Ahmedabad: The Gujarat State GST Department on June 9 carried out searches on four firms located in Dahod and Veraval towns and detected tax evasion to the tune of Rs 45 crore. The infrastructure contractor firms are engaged in executing works under various govt schemes, including centrally-sponsored schemes such as MNREGA, said officials.
During the searches, several irregularities were detected, such as the misclassification of taxable services as exempt, under-reporting of turnover, and wrongfully availing input tax credit (ITC).
These findings point to a systematic and deliberate attempt by these four taxpayers to suppress taxable income and manipulate tax liability with the objective of evading taxes and misusing govt funds, mentioned a release by the state GST department.
Preliminary assessments indicated that the total liability of these four taxpayers, including tax, interest, and penalty, amounts to over Rs 45 crore, said GST officials. Appropriate legal action to secure and realise govt revenue is being pursued by the state GST department, they added.
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