GST Raids Unearth Over Rs. 100 Crore in Hyderabad Retail Chain’s Alleged Tax Evasion

GST - Unearth - Hyderabad Retail Chains - Alleged Tax Evasion- taxscan

The commercial taxes department initiated raids on multiple outlets in the city and across the state on Wednesday night regarding the Goods and Services Tax (GST) evasion in Hyderabad Retail Chains.

The sources suggested that the evasion amounted to over 100 crore during the initial phase of the raids. The searches began on Wednesday night and extended into Thursday.

 Raids were conducted at 12 locations across the state, including Hyderabad, according to sources. The operations targeted more than seven outlets of the chain in the city, including their headquarters in Gachibowli and a stock center in Balanagar. Similar searches took place in Khammam and Karimnagar.

Following a tip about pricing disparities in footwear between purchase and sale, investigations uncovered variances ranging from 100% to 400%, with no corresponding tax payments found.

A source highlighted particular concerns over the marked-up prices of unbranded products, which appeared to exceed purchase prices by 100% to 300%.

“We are currently examining the accuracy of the quoted purchase prices and suspect serious discrepancies in claiming input tax credit,” the source said to TOI. The input tax credit allows registered entities to offset GST paid on business-related purchases against their GST liability upon the sale of goods or services.

Irregularities in stock maintenance records were revealed, with stock worth at least 80 crore, and numerous discrepancies are under investigation. “Once final assessments are made, the total fraud could exceed 100 crore,” sources added. More than 100 personnel from the commercial taxes department participated in the raids and searches.

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