MP trader misused passes in lockdown

The Directorate General of GST Intelligence (DGGI) said it has unearthed an alleged goods and services tax (GST) evasion of over ₹500 crore by chewing tobacco (pan masala and gutka) manufacturers, dealers, and distributors in Indore.

Kishore Wadhwani, a trader who has been named one of the main accused in the case, allegedly used his media outlet to obtain curfew passes which were misused to transport gutka and cigarettes during the Covid-19 lockdown when only the transportation of essential goods was allowed, officials said Tuesday.

DGGI said in a statement that Wadhwani was arrested on June 15 and has been remanded to custody until June 30 in Indore. He has been booked for allegedly making fraudulent bills and using press stickers obtained from the district administration on vehicles used to transport gutka and tobacco, an official investigating the matter said on condition of anonymity.

In the statement, DGGI’S Bhopal unit added that searches were conducted on the premises of gutka and tobacco dealers and distributors from June 9 to June 12, leading to the seizure of stocked non-gst paid pan masala and tobacco. The statement said the raids led to the detection of an estimated GST evasion of ₹400 crore.

“One of the masterminds and financial beneficiaries of the pan masala/tobacco GST evasion, who was arrested from Mumbai on June 15, was also found involved in manufacture and supply of cigarettes from a unit named M/s Ellora Tobacco Company Limited, Indore.”

The statement said the unit has paid only ₹3.55 crore over the last two fiscals as GST. “Investigations conducted by DGGI has unearthed a major tax/duty/cess evasion estimated to be about ₹105 crore only for the period from April 2019 to May 2020.”