The state GST department carried out searches on 79 mobile phone dealers in Ahmedabad, Vadodara, Surat, Rajkot and Bhuj and found tax evasion of Rs 22 crore through undue rebate claims by the companies.
Senior officials said that the companies were procuring phones through tax invoices and were selling it without bills. The rebate for such purchases on book was used for B2B sale to systematically carry out tax evasions.
Of the 79 dealers, 57 were in Ahmedabad, whereas Surat and Vadodara had eight and two companies respectively.
“Majority of the dealers were not maintaining records of mobile phone companies, model numbers, IMEI numbers, etc. making it difficult to keep track of the sales. The searches yielded more than 500 phones having no entry. About Rs 3 crore was collected from the vendors,” said an official, adding that further probe is on.