GST intelligence detects `225cr tax evasion

BHOPAL: Tax evasion of Rs 225 crore has been detected by Central GST intelligence officers after they busted illegal pan masala manufacturing units in Indore and arrested three persons for their involvement in the huge racket.

The officers of Directorate General of GST Intelligence (DGGI) and the Directorate of Revenue Intelligence (DRI) conducted joint raids at 16 suspected illicit and undeclared warehouses and residential locations in Indore and Ujjain between Tuesday and Friday, an official statement issued on Saturday said.

Based on preliminary investigations by DGGI, it has been estimated that the accused persons and their associates have evaded GST of around Rs 225 crore on the goods sold illicitly during the period July, 2019 till March, 2020, it said.

The total duty implication in this fraud is estimated to be around Rs 400 crore, the statement issued by the DGGI said.

During the emergent months (April & May, 2020) of pandemic lockdown also, these persons are believed to have resorted to large scale illicit sale and supply of pan masala/ tobacco, it said, adding that further investigation in the matter was continuing.

The statement said that organisers and masterminds made an unsuccessful attempt of disrupting the enforcement officials by engaging a mob of about 20-30 people during the search at one of the residential and later at a factory premises on Thursday and Friday.