Chhattisgarh State GST’s major action against tax evading businessman

Raipur: An investigation proceedings have been conducted by the State GST Department Jagdalpur on Saturday May 31 , 2025 at the business place of M/s Arihant Steel Narayanpur District Narayanpur. When the investigation team reached the spot, it was seen that no accounting books or software such as Tally related to the business accounting were found maintained at their business place, whereas as per the provisions of GST, it is mandatory to keep all the accounting books at the business place. The businessman told that all the bills are issued by the tax consultant. Due to citing improper reasons , the possibility of tax evasion became even more robust .

Further investigation found that the total turnover from the year 2021-22 to the year 2024-25 is more than Rs 16 crore, but the tax on it has been made for the current financial year was only Rs 43 thousand.

At the same time, when the e-way bill was investigated, it was found that from the year 2021-22 to the year 2024-25, goods worth Rs 8.21 crore were purchased but no e-way bill was issued for the supply of goods. This shows that the goods have been sold to the common consumer but the benefit of bogus input tax has been given by selling the bill to other businessmen, due to which the state government along with the central government has suffered a huge loss of tax revenue.

During the investigation, the businessman admitted his mistakes and voluntarily expressed his intention to pay tax of Rs 10 lakh, but the officials of the GST department demanded the businessman to submit accounting books and other related documents in support of the quantity of stock available at the place of business which estimated value of Rs. 90 lakh .

No information and documents were submitted by the businessman. Besides he tried to put pressure on the investigation team by gathering some media persons and businessmen known to him. For detailed investigation of the businessman’s non-cooperative attitude and tax evasion, the business place has been sealed till further action in the presence of local police.