Ahmedabad: In a major enforcement drive aimed at tackling tax evasion, the Gujarat State GST Department conducted a series of search operations on 02nd May 2025 against 7 Manpower Service Providers operating in Mehsana, Ahmedabad and Junagadh. These operations were based on specific intelligence inputs and extensive surveillance, an official press release said today.

During the course of the search proceedings, several serious irregularities were detected. It was found that certain service providers had collected GST from various government departments but had failed to deposit the same into the Government Treasury. Additionally, taxable services were deliberately misclassified and reported as exempt, to evade legitimate tax liabilities. The investigations also revealed instances of wrongful claim and utilization of Input Tax Credit (ITC) as well as suppression of turnover and discrepancies in records, including the maintenance of parallel books of accounts.

The estimated tax evasion detected during these operations stands in excess or Rs. 15 crores. This amount is likely to undergo an upward revision as cross verification of records and financial data is still underway.

The Gujarat GST Department also reiterated its commitment to ensuring strict tax compliance and warned that intelligence-driven operations will continue to target high-risk sectors for tax evasion. DeshGujarat