Rajasthan govt launches campaign to curb GST evasion, fraudulent ITC claims | Finance News

Rajasthan government’s Commercial Tax Department has launched a special enforcement drive across the state to curb activities that cause revenue loss, such as GST evasion, claiming of fraudulent or ineligible input tax credit (ITC), buying and selling of goods without invoices, and the concealment of business turnover, a senior official said.

“The drive is continuing for over two months now, and as part of this initiative, departmental teams carried out surveys and investigations recently at 10 business establishments located in various places, including Jaipur, Ajmer, Beawar, Didwana-Kuchaman, Khairthal-Tijara, and Phalodi,” the official said.

He said these operations revealed potential tax irregularities totalling about ₹2.85 crore. During the investigation, taxpayers voluntarily deposited or reversed about ₹2.51 crore.

Giving details of recent raids, the official said that in a case involving ineligible ITC for resort construction, an amount of ₹55.26 lakh was reversed. During an operation on October 12 against Stubborn Resorts Private Limited in Jhotwara, Jaipur, the eligibility of ITC claimed for resort construction was examined; the taxpayer subsequently reversed ITC amounting to ₹5,526,230.

Similarly, during an operation on October 13 against AGRS Ventures LLP in C-Scheme, Jaipur, a case of ineligible ITC amounting to approximately ₹1 crore related to the construction of immovable property was uncovered. During the investigation, the taxpayer reversed ITC amount of ₹99.76 lakh.

The official said action was also taken against Assam Timber and Plywood, located on Pushkar Road, Ajmer, following suspicions of selling goods without proper tax invoices and concealing business transactions.

The departmental team conducted a physical verification of the stock and seized suspicious documents. An initial estimate suggests a potential tax irregularity of approximately ₹8 lakh.

Another case involves K C Agencies in Kaisarganj, Ajmer, where officials allege violations if the provisions of the ‘composition scheme,’ sales of goods without ‘bills of supply,’ and concealment of actual turnover.

There are other firms where action has been taken and this exercise would continue further, the official added.