The intelligence wing of the Goods and Services Tax (GST) department has arrested three TMT bar suppliers for carrying out business in a clandestine manner to the tune of Rs 834 crore, resulting in GST evasion of Rs 150 crore.
Based on information, the intelligence team conducted simultaneous search operations at the properties of three prominent taxpayers involved in the business of supply of TMT bars on Thursday.
Investigation revealed that the three entities had been indulging in illicit clearance of TMT bars regularly without invoices. The payments for such sales were received fully in cash and not declared to the GST authorities.
“These fraudulent activities were being systematically managed from a secret location far away from the registered business premises to escape the attention of the department,” said the GST officials.
The searches unearthed the massive illegitimate clearances made at different stages of supply chain without payment of GST. Several incriminating documents were recovered from the premises pertaining to these entities. Three persons were arrested and further investigation is on.