SURAT: Directorate General of GST Intelligence (DGGI) has unearthed GST tax evasion to the tune of Rs 15.5 crore by manufacturers and suppliers of packaged snacks during simultaneous search operations carried out in Surat, Vadodara, Bharuch and Surendranagar on Thursday.
DGGI’s Surat zonal unit had received intelligence about various firms engaged in the manufacturing and selling of packaged snacks for huge evasion of GST. Search operations were carried out in Surat, Bharuch, Vadodara and Surendranagar by DGGI sleuths, an official release said.
Preliminary scrutiny of documents revealed that the firms were miss-classifying their products under harmonized system nomenclature (HSN) code to evade GST payment. The unfried fryum and papad products supplied by the firms are taxable at the rate of 12% under GST. However, these firms were not paying applicable tax thereby evading GST to the tune of Rs 15.5 crore.
A DGGI officer said the firms have admitted about misclassification of the items and non-payment of GST. The firms have paid Rs 90 lakh and have agreed to pay the remaining tax dues soon.
Source- Times of India.