GST raids on 50 firecracker traders in Ahmedabad, Surat

Gujarat State Goods and Services Tax (GST) Department carried out raids on around 50 firecracker traders and manufacturers across Ahmedabad, Surat, and other regions of the state.

According to officials, the action was taken to curb widespread tax evasion in the firecracker trade, which attracts 18% GST. Preliminary findings suggest that a large portion of firecracker sales in Gujarat are conducted without proper billing, resulting in substantial revenue losses for the government.

Sources in the GST department said that many traders have been issuing ‘kachcha bills’ and showing inflated maximum retail prices (MRPs) on products, even as actual sales go unreported.

Since GST was implemented on July 1, 2017, authorities have observed a consistent mismatch between the production and sale volumes of firecrackers and the tax collected. The latest operation aims to verify whether traders are complying with GST regulations and maintaining proper records.

Officials added that similar raids had been conducted in the past by the Income Tax Department, which had also unearthed large-scale tax evasion in the firecracker industry in Ahmedabad.

The GST department’s investigations are ongoing, and further action is expected based on the findings from the seized documents and digital records.