GST Dept crackdown on pan masala, tobacco supply chain in Gujarat uncovers ₹5 crore tax evasion

Ahmedabad: Based on specific intelligence inputs and surveillance, the State GST Department launched a special investigation drive on April 2, 2025, covering the entire supply chain — including pan masala and tobacco manufacturing units, godowns, distributors, and retailers — in North and South Gujarat.

The investigation was conducted at 20 locations linked to 8 traders in Ahmedabad, Vapi, Valsad, Palanpur, Deesa, Himmatnagar, and Satlasana. Several irregularities were detected during the drive, including unaccounted sales through cash transactions and unaccounted stock. The department uncovered an estimated tax evasion of over ₹5 crore by these taxpayers.

The State GST Department remains committed to safeguarding state revenue and ensuring strict enforcement of GST laws. These details were shared by the department in a press release. DeshGujarat