To facilitate smooth conduct of election, the enforcement agencies have been asked to prepare an action plan and take strict action against the traders issuing fake and bogus invoices, undeclared godowns and transportation of goods distributed for free. Following actions, an amount of Rs. 35.06 crores have been deposited from 143 traders. The tax evasion may even be higher.
So far, prima facie money has been recovered from 93 businessmen against tax evasion amounting to Rs. 20.77 crores were deposited. Particularly in garments the amount was Rs. 2 crores, utensils/household items worth Rs. Rs 3.80 crore in mobile, electrical/electronic equipments. A total of Rs. 6.89 crore, Panmasala/Tobacco Products Rs. 3.00 crore and Mona/Bandi/precious metal jewelery etc. worth Rs. 4.12 crores were deposited.
A sum of 14.29 crores has been recovered from a total of 50 businessmen dealing with export-oriented commodities like Iron & Steel, Construction Materials, Plastic Goods, Oil & Oil Seeds, Construction and Marriage Garden etc.
Led by Commercial Tax Commissioner, Swatantra Kumar Singh, the State GST Department has identified doubtful registered taxpayers on the basis of prescribed parameters. Sector-wise analysis of information received from other states, data available on BIFA/GAIN, GST Prime, E-way bill Portal, Bo-web etc. was done.
Data analysis of documents used by businessmen to obtain registration, PAN numbers, e-mail addresses and other new registrations registered on mobile numbers was done along with confidential information obtained from the field.
Freebies and evasion-prone commodities falling under a particular sector involved in tax evasion through undeclared godowns and undeclared stocks of businessmen related to garments/clothes, household items/utensils, mobiles, electronics, cosmetics, panmasala etc. Special enforcement action against possible tax evasion in connection with Lok Sabha elections, 2024
Data analysis of documents used by businessmen to obtain registration, PAN numbers, e-mail addresses and other new registrations registered on mobile numbers was done along with confidential information obtained from the field.
While conducting investigation on sector specific freebies like garments/clothes, household items/utensils, mobiles, electronics, cosmetics, pan masala etc., a sum of Rs. 20.77 crores were deposited.
Especially in garments the amount is Rs. 2 crores, wares/household goods worth Rs 3.80 crore in mobile, electrical/electronic equipment's. 6.89 Crore, Panmasala/Tobacco Products Rs. 3.00 crore and Mona/Bandi/precious metal jewelery etc. worth Rs. 4.12 crores were deposited.
Commercial Tax Commissioner has conducted special investigation in 28 border districts of Madhya Pradesh for special investigation of vehicles transporting goods related to freebies and without valid documents like bill, e-way bill, wilty etc. under the investigation proceedings related to Lok Sabha General Election, 2024. Temporary check post and 12 mobile teams were formed.
Thus, effective prevention of the tendency of tax evasion through enforcement actions taken under Section 67 of the GST Act, 2017 and checking of moving vehicles under Section 68 will prevent the loss of government revenue and ensure revenue security as intended by the Election Commission. As per the provisions of GST Act, 2017, the statutory process of ITC reversal, levy of interest and penalty is being initiated against all the traders.
