GST raids at car accessories, auto parts dealers in four major cities in Gujarat
A tax evasion of ₹6 cr and recovered ₹1.50 cr from the traders
Raids initiated at 72 locations of 46 dealers of car accessories and auto parts
Updated: Oct 30th, 2023
After the boost in sales of the automobile sector on the occasion of Dussehra in the state, in a bid to uncover tax evasion, the goods and service tax (GST) department conducted raids at multiple locations in four major cities of Gujarat on Oct 27.
The tax department launched an extensive investigation at about 72 locations of 46 dealers of car accessories and auto parts across the state and has uncovered a tax evasion of ₹6 cr and recovered ₹1.50 cr from the traders.
Different teams of GST officials raided 35 auto parts and accessories dealers in Ahmedabad, 12 in Surat, and 12 in Vadodara. Raids were also executed at 13 different locations in Rajkot, a hub of auto parts manufacturing.
The tax-theft
During the investigation of inventory and accounting records, at many locations, goods were bought and sold frequently without the traders keeping accounts.
The team has also noticed that the goods were misclassified and the tax was paid at a lower rate. An investigation revealed that traders were collecting tax separately from customers, despite the benefits provided through the composition scheme.
Moreover, the raids at 76 locations, uncovered that auto parts dealers were operating a business without the registration.
Recently, in a raid by the GST department on 79 mobile phone shops, a tax evasion amounting ₹22 cr was recovered and 500 mobile phones were seized which were sold without bill.
