GST Intelligence sleuths from Visakhapatnam conducted searches in Nalgonda district on rice millers, following the information that there is a huge evasion of tax in the sale of rice bran. Searches were conducted on Friday and Saturday in Mirgyualaguda town on around 30 rice millers where it was alleged that the buyers of bran had issued fake invoices.
Karnati Ramesh, president of Miryalaguda Rice Millers Assocation told TOI, “The searches on rice millers began on Friday. Usually the rice bran with high oil content is sold to the solvent and oil industries. But in case of polished rice we get less content of oil and this is sold to the agents and brokers who in turn sell it to the industry.” He added.
“How would we know that the bills or invoices raised by these agents are fake. It may be so in a few cases where the rice millers have colluded. Mostly the fault lies with the agents and brokers who buy the bran. Usually oil content in bran varies from 16% to 24%. Even the soap industry uses it. Edible oil is also extracted. Rice millers are supposed to pay 5% GST.” In Telangana there are around 2,300 rice mills, including 120 in Nalgonda. “In Miaryalaguda we have 81 rice mills. Millers are running into losses due to which there could be some discrepancies,” Ramesh concluded.