DGGI busts ₹80 crore GST evasion by peanut butter companies in Gujarat

Bhavnagar: The Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal Unit, raided five companies in Mahuva taluka and seven other locations in Gujarat for alleged tax evasion. The raids uncovered that these companies misclassified chocolate-flavored peanut butter, taxed at 18%, as plain peanut butter, taxed at 12%, resulting in a 6% tax evasion. These raids uncovered alleged tax evasion of ₹80 crore and led to an immediate recovery of ₹5 crore.

The DGGI initiated the raids after receiving information that vendors were fraudulently billing chocolate-flavored peanut butter as plain peanut butter. Data from the companies’ computers and active informants were used in the investigation. The raided companies include Mother Nutri Foods Private Limited, R.M. Foods, Ruparel Foods Private Limited, United Foods, and Nutrify Health Foods in Bhavnagar, and Das Foodtech Private Limited and Das Superfoods Private Limited in Himmatnagar. Further investigation is ongoing. – DeshGujarat