Assam: GST evasion by work contractors detected in search & seizure ops

Staff Reporter

Guwahati: There is huge GST evasion indulged in by work contractors, according to the evidence gathered so far by the Taxation Department. Teams of officials of the Taxation Department during inspection, search, and seizure operations conducted in the business premises of such works contractors found evidence of suppression of sale and availing of fake/ineligible ITC.

In the last several days, officials of different units/zones/head office of the Commissionerate of State Goods and Services Tax, Assam, conducted search and seizure operations in the business premises of various works contractors in different places throughout the state, like Goalpara, Udalguri, Guwahati, Tezpur, Biswanath Chariali, Barpeta, Karimganj, Jorhat, Sibsagar, Tinsukia, and Silchar.

The total turnover involved in these cases is estimated to be around Rs.920 crore. Tax involvement therein is around Rs 102 crore. Verifications are going on, and the actual amount of evasion will be established after final verifications. In the meantime, some of the taxpayers voluntarily paid around Rs. 15.08 crores during the proceedings. The balance amounts will be realised after completion of verification and proceedings, officials said.

The incidence of fake ITC availed by the works contract sector is rampant and increasing. The Tax Department is taking a serious note of this matter and examining all such cases for further proceedings.

The State GST Department is gearing up to detect such unscrupulous taxpayers so that the revenue of the state is safeguarded. Search and seizure/arrest of such unscrupulous taxpayers will create deterrence for such activities, and it will make them think twice before indulging in such activities. It is a message to all such taxpayers not to indulge in such malpractices; otherwise, they will have to face the consequences like penalty, prosecution, and arrest, the officials maintained.

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