The Directorate General of GST Intelligence (DGGI), Chennai recently carried out coordinated search operations against three major taxpayers involved in the supply of TMT Bars. The investigation has revealed that these entities were engaged in the illegal clearance of TMT bars without proper invoices.
The payments for these sales were received in cash, and the transactions were not reported to the GST authorities. This clandestine activity resulted in a loss of Rs 150 Crore approximately in GST evasion, with the amount involved in such transactions estimated at Rs 834 Crore. These fraudulent activities were carefully planned and executed from a secret location away from the registered business premises, to avoid the attention of the department.
The investigation by DGGI Chennai discovered that large-scale illegitimate clearances have been made at various stages of the supply chain without the payment of GST. During the DGGI search operations, several incriminating documents were seized from the premises of these entities. As a result of the operation, three people were arrested, and further investigation is underway.
This crackdown on illegal TMT bar clearance is a significant achievement for the DGGI, Chennai, and marks another step towards ensuring greater compliance with GST regulations. It sends a clear message to those who seek to evade tax that their activities will not go unnoticed and that the authorities are taking strict measures to curb such activities.