Cash transactions to evade GST; DGGI raids Ahmedabad-based firm

Ahmedabad: The Ahmedabad Zonal Unit of the Directorate General of Goods and Service Tax Intelligence (DGGI) conducted raids on Ahmedabad-based Tobacco company, targeting 10 locations, including the factory in Lapkaman and the office near Gurudwara on SG Highway. The raids resulted in the seizure of substantial documents and digital devices, indicating a tax evasion of Rs. 5-10 crores.

The raids encompassed the Tobacco factory, office, and residences of directors Pinakin Gor and Rashmin Majethia. During the investigation, it was found that the company manufactured and sold various tobacco products in large quantities for cash transactions without proper billing. The company’s account books revealed discrepancies showing lower production figures than actual.

The investigation is ongoing, with the potential for the identified tax evasion figure to increase as more information is uncovered. DeshGujarat