In its drive against goods and services tax (GST) evasion, the intelligence arm of GST administration has found that certain transporters have been colluding with Delhi and Himachal Pradesh-based companies to move undervalued or unaccounted goods, sources in the revenue department said.
A preliminary investigation showed that the goods reported to the GST system had been under-valued by as much as 30%, sources said. While most evasion cases involved circular trading and issuance of fake invoices without actual supply of goods, the involvement of transporters has also come to light now.
“Searches were conducted at the transporters’ premises in Ludhiana, Jalandhar and Delhi, along with the suppliers of these goods in Delhi and Himachal Pradesh at various locations,” a source said. He added that the goods mainly involved in the racket were footwear/shoes, plastic sleepers, tobacco and shaving foam among others.
During searches and surveys, the field formations found Ludhiana Golden Transport Service of Ludhiana and MNK Transport Company of Jalandhar actively involved in transporting under-valued goods resulting in GST evasion, sources said.
The Directorate General of GST Intelligence (DGGI) has been conducting search and seizure operations from the second week of November. This has resulted in the arrest of 140 persons including 5 chartered accountants. The department has also booked 1,488 cases against 4839 fake entities.