Directorate General of GST Intelligence detects Rs 72 crore tax evasion

NEW DELHI: The Directorate General of Goods and Service Tax Intelligence unveiled evasion of tax of more than Rs 72 crore by a racket of clandestine clearance of cigarettes through a factory run in Kota.

Acting on specific intelligence searches were conducted at various places in Kota and Nagaur on July 17, 2020 including the factory, trading firms, godowns, secret offices and residences of beneficiaries, the ministry of finance said in a statement Wednesday.

“During the search, incriminating documents and electronic devices pertaining to the supply of cigarettes without payment of taxes and duties were recovered.


Preliminary investigation showed tax evasion of over Rs 72 crore till now. Data from the seized documents has revealed that the supply of cigarettes was being carrying even during the lockdown period, the statement added.

One person in this regard has been arrested on July 20, under the provisions of CGST Act, 2017, and further investigation is under process.