In a major crackdown, the Directorate General of GST Intelligence (DGGI), Chennai, has unearthed illegitimate clearances of TMT (thermo-mechanically treated) bars worth ₹800 crore and evasion of GST to the tune of around ₹150 crore.
The DGGI recently conducted simultaneous search operations against three prominent taxpayers involved in the business of supplying TMT bars.
Preliminary investigation revealed that these entities were indulging in the illicit clearance of TMT bars regularly without issuing invoices. The payments for such sales were received fully in cash and not declared to the GST authorities. The amount involved in such clandestine transactions was ₹834 crore, which has led to GST evasion of around ₹150 crore, says a press release issued by Mayank Kumar, Principal Additional Director General, GST Intelligence.
These fraudulent activities were being systematically managed from a secret location far away from the registered business premises to escape the attention of the department.
The investigation unearthed the massive illegitimate clearances made at different stages of the supply chain without payment of GST. During the search operations, several incriminating documents were recovered from the premises pertaining to these entities. Three people have been arrested. Further investigation is in progress, says the release.