₹61-crore tax evasion racket unearthed

CHANDIGARH : The UT excise and taxation department unearthed a GST scam worth ₹61 crore on Friday. Six city-based firms allegedly evaded ₹61-crore GST payment, according to excise officials.

Acting on a specific input, six teams were constituted to conduct searches at several premises of these firms on Friday.

“The department conducted searches at offices of M/s SR Agencies, M/s Global Home Solutions, M/s Rajat Enterprises, M/s Polytech, M/s Euro Sales and M/s Amba Agencies in Gobindpura and Manimajra,” said RK Chaudhary, assistant commissioner, UT excise and taxation.

These firms deal in pipes, tiles, etc. and evaded ₹61-crore GST payment. “The investigation conducted so far has revealed that these dealers did not pay GST to the government and facilitated illicit input tax credit (ITC) entitlement. All the firms have not filed their GSTR-3B monthly tax returns from February onward,” said Chaudhary.

“The premises of five firms were found closed and it has come to the fore that no such firms exist at the given addresses. Only M/s SR Agencies premises was located from where all other firms operated,” added Chaudhary.

Preliminary investigations revealed that firms generated e-way bills using motorcycles, three-wheelers, and even ambulance for showing transportation of goods. Some incriminating documents of the firms have been taken into possession. The investigation is underway as the department suspects the involvement of other firms in the racket.

NUB OF THE MATTER

According to petrol pump dealers in Mohali and Panchkula, over the past three years, the Chandigarh administration dropped VAT rates twice in October 2017 and October 2018, resulting in a “total shift” of trade to Chandigarh (see box for VAT).

The dealers are also resentful about Chandigarh petrol pumps putting up boards advertising cheaper rates in Chandigarh against those in Mohali and Panchkula.

SALES DROPPED IN MOHALI, PANCHKULA IN PAST THREE YEARS

A comparison of sales figures of fuel stations in the tricity over the past three years, exhibits a sharp slide in sales at Mohali and Panchkula.

Mohali’s sales dropped by 42% as of June this year. In the corresponding period, Chandigarh

doubled its diesel sales, while Panchkula’s sales have dipped by 40%.

UT adviser Manoj Parida said, “We understand the concerns of petrol pump owners in Mohali. But instead of asking us to

increase VAT, they should ask the Punjab and Haryana governments to slash the rates. We follow central government’s instructions for consumers’ benefit. Besides, we recently increased VAT to 22.45%.”