In a significant operation conducted by the GST enforcement department, manufacturing plants in the Urla and Siltara regions were targeted, revealing a major tax evasion scheme. Shyam Steel Industries, Ishwar Ispat, and Ishwar TMT, three prominent iron and steel producers, were found to have evaded GST payments amounting to Rs 6.75 crore.
Initial investigations indicate that the actual scale of GST evasion may exceed the identified figures. In response to the enforcement action, the implicated companies swiftly settled by paying Rs 4.75 crore in GST to the authorities.
The GST enforcement division is actively pursuing allegations of tax fraud, uncovering that the companies engaged in purchasing raw scrap for bar manufacturing without fulfilling the requisite GST payments.
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This evasion pattern had long been on the enforcement radar, and the decision to initiate action was supported by in-depth analysis utilizing advanced Income Tax tools. The investigation involved scrutiny of e-way bills and comprehensive ground-level data collection.
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The alleged method of evasion involved purchasing raw scrap for the production of bars without paying the due GST. The Chhattisgarh GST enforcement team has been vigilantly pursuing cases of tax evasion, with a particular focus on these companies for their non-payment of GST on scrap.
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