Gujarat SGST Department Detects Rs 3.53 Crore Tax Evasion in Tobacco and Battery Sectors

The Gujarat SGST Department has uncovered significant tax evasion in the tobacco and battery sectors, amounting to Rs. 3.53 crore. The investigation revealed multiple instances of under-reporting sales, fake invoices, and unauthorized input tax credit claims. The department conducted extensive raids and inspections across various manufacturing units and trading establishments. Officials discovered unaccounted stock, manipulated books of accounts, and evidence of circular trading. The evasion primarily involved suppression of taxable turnover and irregular claiming of input tax credit. The department has initiated recovery proceedings and is examining the involvement of other parties in the fraud. This case highlights the ongoing challenges in ensuring tax compliance in these sectors. The authorities are strengthening surveillance and monitoring mechanisms to prevent similar evasions in the future.