Shahjahanpur GST Raid reveals ₹1.2 Cr Goods and Services Tax Fraud at Tractor Agency

Vineet Tractor Agency in Shahjahanpur was raided by the Special Investigation Branch of GST Bareilly Zone on Friday.

The investigation confirmed large-scale financial irregularities. After discovering tax evasion of Rs 1.2 crore, they deposited Rs 32 lakh and were given seven days to deposit the remaining Rs 90 lakh. The SIB (Special Investigation Branch) team arrived at the dealer’s establishment at 12 noon on Friday.

The mobile phones of all present individuals were confiscated, and no one was permitted to enter the establishment during the investigation. According to GST Additional Commissioner Grade-1 OP Choubey, the firm holds dealerships of Mahindra and TVS companies. An in-depth investigation of the data obtained revealed that the businessman had sold goods worth Rs 116 crore in the last two years, resulting in a taxable liability of around Rs 21 crore.

However, after adjustment from input tax credit (advance tax payment), only Rs 358 was deposited. It is reported that initially, the businessman remained adamant about his claim, but upon being explained the facts, he acknowledged his mistake and admitted to the Rs 1.2 crore tax payment shortfall. He promptly deposited Rs 32 lakh on the spot and requested time to deposit the remaining Rs 90 lakh.

Less sales were shown in the forms for the last two financial years. The businessman had paid less tax of Rs 1.10 crore by showing Rs 6 crore less in sales in the forms filed in the financial year 2023-24. The tax payable was adjusted by claiming more ITC than prescribed for the financial year 2022-23.

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