CGST department action against tax evaders in Mandi Gobindgarh leaves SGST red faced again

LUDHIANA: The working of State GST department, mobile wing has once again come under scanner for the fourth time in last five months, preventive wing of Central GST commissionerate, Ludhiana yet again on Tuesday conducted big action against facilitators of tax evasion network in Mandi Gobindgarh. In the action 22 trucks loaded with iron and steel scrap were intercepted by the department and after being caught without mandatory e-way bill, penalty and tax in the tunes of Rs 27.86 lakh was imposed on the owners of the goods and trucks. Interestingly, 9 trucks were found inside a factory and penalty has been slapped on the owners of the factory as well for facilitating the tax evasion.

In last five months CGST has conducted four major operations (including Tuesday's action) and has been able to collect tax and penalties in the tunes of Rs 82.27 lakh in such cases. However SGST department's mobile wing which has the primary responsibility of conducting such checkings of trucks has not been able to execute similar actions regardless of having far more resources than CGST department.

Speaking to TOI on condition of anonymity an official of the SGST department said, “Problem of tax evasion in Mandi Gobindgarh has taken a serious turn and an organised cartel is operating here which is facilitating tax evasion by movement of goods within and out of state by using forged bills and other methods. There are a large number of gangs indulged in this malpractice who openly take orders for delivery of goods without bill from one place to another with the help of fake bill books.”