Ahmedabad: The Central Goods and Services Tax (CGST) Ahmedabad-North Commissionerate uncovered a major GST evasion involving a partnership firm, Gayatri Abrasive, which was allegedly engaged in the clandestine clearance of goods without issuing invoices. The firm allegedly cleared goods worth Rs 37 crore without paying GST, leading to a tax evasion of Rs 7.07 crore.
The mastermind behind the operation was also arrested and sent to judicial custody for 14 days.
A search conducted at Gayatri Abrasive’s business premises on Feb 19 revealed electronic records of unaccounted clearances of grindstones, hand tools, saws, and other goods since 2021-22. The firm systematically evaded tax by failing to generate invoices for sales.
One of the firm’s active partners was arrested on Feb 20 after admitting to the fraudulent practice in a recorded statement. The accused was remanded to judicial custody, and further investigations are underway to uncover the full extent of the tax evasion network.
The development comes just a week after the commissionerate exposed a case of fraudulent Input Tax Credit (ITC) refunds claimed through non-existent entities, amounting to over Rs 80 crore.