New Delhi: The Directorate General of Goods & Services Tax Intelligence (DGGI) has detected tax evasion of Rs 6 crore by firms based out of Surat and Vapi in Gujarat and a tax consultancy agency, stated a report.

The Surat unit of DGGI had raided at least five locations of the Surat-based Vrushti Enterprise for allegedly selling their steel products without paying the GST, revealed official sources. It must be noted that these firms were engaged in selling various steel items including MS pipes, steel channels, gudder, patti, and steel rods, added the report.

A senior officer was quoted by a Times of India report as saying, “The initial evasion of GST and Service tax is to the tune of Rs 6 crore. However, after the scrutiny, the amount may increase.”

In yet another incident in the month of June, an outlet had come under the scanner for tax evasion and for not being registered under the GST Act. Shop owner Mukesh had told news agency ANI, “My shop was raided on June 20. My daily sale is around Rs 2000-3000. Modi ji had said that GST registration is required in turnover of more than Rs 40 lakh, my income is not even half of it. These people are threatening me now.”

Similarly in April this year, a local firm’s promoter was arrested for allegedly evading GST to the tune of Rs 88 crore by raising fraudulent invoices, a report quoted officials as saying. The racket was busted by the preventive wing of central GST Ahmedabad-South Commissionerate, noted an official statement.