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Mint
4 days ago
- Business
- Mint
₹104 crore tax evasion by tobacco dealers detected this fiscal year, says govt
The authorities have detected 61 cases of tax evasion by dealers of tobacco products such as gutka, cigarettes and pan masala across the country, amounting to ₹ 104.38 crore till June this financial year. The information was provided to the Lok Sabha on Friday in response to a question on whether the government has assessed the extent of tax evasion, illicit trade and unregulated manufacturing in the Zarda sector. In a written reply, Minister of State for Health Prataprao Jadhav stated that the Department of Revenue has informed that the illegal trade of tobacco products is a clandestine activity, making it difficult to accurately estimate the loss of revenue. However, Jadhav's reply confirmed that 'Central Goods and Services Tax (CGST) zones and Directorate General of Goods and Service Tax Intelligence (DGGI) have detected 61 cases of (tax evasion by) gutka/chewing tobacco/cigarettes/pan masala (entities) involving tax amounting to approximately ₹ 104.38 crore in the current financial year up to June 2025." Regarding steps taken to strengthen the enforcement action, Jadhav explained that the DGGI and CGST officers have been sensitised to deal with the issue. Their focus is on verifying and enhancing the level of compliance of registered taxpayers as well as identifying unregistered entities to bring them under the tax net. Jadhav also clarified the regulatory landscape surrounding tobacco products. Pan Masala standards: The standards for pan masala are prescribed under sub-regulation 2.11.5 of the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011. Manufacturers are required to comply with these specifications. Gutka standards: It was also noted that no standards of gutka are prescribed under this specific regulation.
Mint
4 days ago
- Business
- Mint
Tax money goes up in smoke: ₹104 crore tax evasion by tobacco dealers detected this fiscal year, says govt
The authorities have detected 61 cases of tax evasion by dealers of tobacco products such as gutka, cigarettes and pan masala across the country, amounting to ₹ 104.38 crore till June this financial year. The information was provided to the Lok Sabha on Friday in response to a question on whether the government has assessed the extent of tax evasion, illicit trade and unregulated manufacturing in the Zarda sector. In a written reply, Minister of State for Health Prataprao Jadhav stated that the Department of Revenue has informed that the illegal trade of tobacco products is a clandestine activity, making it difficult to accurately estimate the loss of revenue. However, Jadhav's reply confirmed that 'Central Goods and Services Tax (CGST) zones and Directorate General of Goods and Service Tax Intelligence (DGGI) have detected 61 cases of (tax evasion by) gutka/chewing tobacco/cigarettes/pan masala (entities) involving tax amounting to approximately ₹ 104.38 crore in the current financial year up to June 2025." Regarding steps taken to strengthen the enforcement action, Jadhav explained that the DGGI and CGST officers have been sensitised to deal with the issue. Their focus is on verifying and enhancing the level of compliance of registered taxpayers as well as identifying unregistered entities to bring them under the tax net. Jadhav also clarified the regulatory landscape surrounding tobacco products. Pan Masala standards: The standards for pan masala are prescribed under sub-regulation 2.11.5 of the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011. Manufacturers are required to comply with these specifications. Gutka standards: It was also noted that no standards of gutka are prescribed under this specific regulation. Prohibition of Tobacco in food: Food Safety and Standards (Prohibition and Restriction of Sales) Regulation, 2011, prevents the use of tobacco and nicotine as ingredients in food products.
The Hindu
4 days ago
- Business
- The Hindu
Over ₹104-cr. tax evasion by tobacco product dealers detected this fiscal year: Govt
The authorities have detected 61 cases of tax evasion by entities dealing in tobacco products such as gutka, cigarettes and pan masala, amounting to ₹104.38 crore till June this financial year, Lok Sabha was informed on Friday (July 25, 2025). In a written reply, Minister of State for Health, Prataprao Jadhav said the Department of Revenue has informed that illegal trade of tobacco products is a clandestine activity and hence, the loss of revenue cannot be accurately estimated. 'However, Central Goods and Services Tax (CGST) zones and Directorate General of Goods and Service Tax Intelligence (DGGI) have detected 61 cases of (tax evasion by) gutka/chewing tobacco/cigarettes/pan masala (entities) involving tax amounting to approximately ₹104.38 crore in the current financial year up to June 2025,' Mr. Jadhav's reply said. The Minister was responding to a question on whether the government has assessed the extent of tax evasion, illicit trade and unregulated manufacturing in the Zarda sector. On steps taken to strengthen the enforcement action, Mr. Jadhav said that the DGGI and CGST officers have been sensitised to verify and enhance the level of compliance of registered taxpayers and to identify unregistered entities so as to bring them under the tax net. The standards of pan masala are prescribed under sub-regulation 2.11.5 of the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011. Any manufacturer of pan masala is required to comply with the requirements specified under the sub-regulation, said Jadhav, who added that no standards of gutka are prescribed under this regulation. Further, Food Safety and Standards (Prohibition and Restriction of Sales) Regulation, 2011, prevents the use of tobacco and nicotine as ingredients in food products, he added.
New Indian Express
4 days ago
- Business
- New Indian Express
Businesswoman held for Rs 100 crore GST fraud involving 27 fake firms across states
BHUBANESWAR: In a major breakthrough, the directorate general of GST intelligence (DGGI), Bhubaneswar zone, has unearthed a massive fraud involving a number of shell companies and fraudulent input tax credit (ITC) transactions worth several crores of rupees. A statement issued by the DGGI on Thursday said a businesswoman from Rourkela has been arrested in connection with the tax evasion involving creation and operation of 27 fake firms. The total value of the fraudulent transactions is estimated to be over Rs 100 crore. Acting on the lead obtained during inspection of a Cuttack-based firm, GST officials conducted a search operation at the residential premise of the accused in Rourkela. During the search, several incriminating materials, including fake seals of different firms, mobile phones and documents related to benami firms were seized. Sources said, the accused had allegedly opened a firm in the name of a lawyer in Cuttack. When the tax officials enquired about the firm, the lawyer stated his ignorance, which led the DGGI uncover the fraud. Preliminary findings revealed that 27 fake non-existent firms, without any business activity, were run by the woman using forged documents in the name of the dummy persons at various places in Odisha and outside. The firms were used solely for generating fake invoices and e-way bills. The accused allegedly used these entities to create a network of bogus transactions across different locations. 'Initial probe suggested that transactions involving Rs 85 crore were routed through these fake firms in the last few years. The prime suspect has been arrested,' the statement said.
Time of India
5 days ago
- Time of India
Woman arrested for over Rs 100cr GST fraud
Bhubaneswar: The Directorate General of GST Intelligence (DGGI), Bhubaneswar zonal unit, arrested a 45-year-old married woman in Rourkela for alleged tax fraud of more than Rs 100 crore on Thursday evening. A court sent her to judicial custody. GST officials said she was kingpin of a massive fraud involving the creation and operation of multiple fake firms. She orchestrated fraudulent transactions related to input tax credit (ITC). Sources said the investigation was initiated following a lead during an inspection of a Cuttack-based firm. GST officials subsequently conducted a search at the residence of the accused in Rourkela. The search yielded several incriminating items, including fake seals of various firms, mobile phones, and key documents linked to the fake entities, a GST officer said. Preliminary findings reveal that the accused managed 27 non-existent firms, which had no legitimate business activities. These firms were allegedly operated using forged documents in the names of dummy individuals across various locations in Odisha and beyond. The primary purpose of these entities was to generate fake invoices and e-way bills, resulting in a significant loss to the exchequer. The investigation suggests that the transactions were made through these fake firms over the past few years. In 2022-23, GST had served her notice for alleged fraud of Rs 11 crore through four firms.
