Directorate General of GST Intelligence’s (DGGI) Surat zonal unit unearthed Rs 10 crore worth of GST evasion by three firms located in Valsad, Bharuch and Surat districts on Monday. According to an official communiqué, DGGI officials raided a private company in Ankleshwar, engaged in contract services, and unearthed GST tax liability of Rs 8.92 crore. The firm was collecting GST from its customers from April 2019, but didn’t pay GST or fill GST 3B return.
Its GST registration was cancelled by tax authorities in November, 2019. Investigations revealed that the firm operates in eight different locations throughout the country, but had not paid GST nor filed GST return. Accepting liability, company director paid Rs 90 lakh as initial tranche. In two other cases, DGGI raided a firm engaged in supply of labour and construction services in Valsad and a franchisee outlet of Gujarat Gas Limited in Vapi for Rs 1.45 crore worth of GST evasion. DGGI stated that the firm which provided construction and labour supply services to various firms located in Valsad, Silvassa and Daman from April 2017 to August 2018 received payments against invoices.
However, the firm neither filed GST return nor paid GST. On scrutiny, it was found that it had collected Rs 55 lakh from its clients against GST, but didn’t deposit it with the government. DGGI stated that the other firm charged commission from gas company, but from December 2018 onward it had neither paid GST nor filed GST return. Its total tax liability from December 2018 to December 2019 was about Rs 90 lakh. The three firms raided were H’reck Engineers Private Limited of Ankleshwar; Dhrupatidevi Motilal Sharma of Valsad and Tanu Motors of Vapi.