GST raids at agencies involved in Govt schemes including MNREGA

Gandhinagar: The Gujarat State GST Department conducted searches on 9th June 2025 on four taxpayers located in Dahod and Veraval, who were engaged in executing works under various government schemes, including centrally sponsored schemes such as MNREGA.

During these searches, several irregularities were detected, such as misclassification of taxable services as exempt, under-reporting of turnover as compared to bank receipts and GST returns filed and wrongful availment of Input Tax Credit (ITC). These findings points to a systematic and deliberate attempt by these four taxpayers to suppress taxable income and manipulate tax liability with the objective of evading taxes and misusing government funds.

Preliminary assessments indicate that the total liability of these 4 taxpayers including tax, interest, and penalty amounts to over ₹45 crore. Appropriate legal action to secure and realize government revenue is being pursued by the State GST Department.

This operation is part of the Gujarat State GST Department’s broader strategy to ensure accountability, particularly among service providers to government through deterrent enforcement actions. DeshGujarat