In a significant move against tax evasion, the Central Goods and Service Tax Department (CGST) has successfully recovered ₹1.25 crore from 10 readymade garments traders in the city of Indore. These traders were found guilty of evading payment of 5% GST by conducting transactions solely on slips, circumventing the formal billing process.
The crackdown began when the CGST team initiated searches at the shops of the identified traders on Thursday. The action targeted establishments situated in prominent areas such as Rajwada, Readymade Complex, River Side Road, among others. During the raids, a substantial quantity of stock and pertinent documents were seized from the premises, substantiating the illicit practices of the traders.
Official sources have revealed that the city witnesses a substantial influx of readymade garments from various parts of the country, particularly from Kolkata. These garments are distributed by wholesale traders in areas like River Side and Rajwada without issuing proper invoices, enabling tax evasion on a significant scale.
In response to this prevalent malpractice, the preventive team of the CGST department took decisive action against several establishments, including Ashoka Dresses, Heera Textile, Venus Enterprises, RB Textile, and others located in Prakash Plaza. The enforcement efforts yielded a recovery of ₹1.25 crore in GST evasion from these establishments alone.
The successful operation underscores the government's commitment to combating tax evasion and ensuring compliance with GST regulations. Such actions not only deter fraudulent activities but also promote a level playing field for businesses by curbing unfair competition resulting from tax evasion.
Furthermore, the recovery of substantial amounts underscores the importance of vigilant enforcement measures in safeguarding government revenue and maintaining the integrity of the taxation system. The CGST department remains vigilant and proactive in identifying and addressing instances of tax evasion across various sectors to uphold the principles of fiscal transparency and accountability.
As investigations continue, authorities are expected to take further legal action against the errant traders, sending a strong message against tax evasion and reinforcing the importance of compliance with GST laws.