Commercial Taxes Department Cracks Down on GST Fraud of Over Rs 50 Crore; One Arrested

Commercial Taxes Department Cracks Down on GST Fraud of Over Rs 50 Crore; One Arrested

Rajasthan GST Fraud of Over Rs 50 Crore Uncovered; One Arrested

In a significant crackdown on tax evasion, the Enforcement Branch-II of the Rajasthan Commercial Taxes Department has arrested Mahesh Chand Gupta, the proprietor of JSM Industries, in connection with a GST evasion case involving more than Rs 50 crore. The accused was produced before the Special Court (Economic Offences), Jaipur, which remanded him to judicial custody.

According to the department, the accused was engaged in the sale and purchase of almonds under the name JSM Industries and allegedly carried out substantial taxable supplies without issuing tax invoices and without remitting the applicable GST to the government.

Authorities found out during the investigation that a significant portion of transactions during the financial years 2022-23, 2023-24 and 2024-25 were allegedly conducted outside the books of accounts and without valid GST documentation, resulting in GST evasion exceeding Rs 50 crore.

After verification of financial records, audit reports, digital evidence and other documents it was discovered that the firm had purchased and sold goods without properly recording the transactions in its official accounts.

The Commercial Tax Department used its authority under Section 69 of the Goods and Services Tax Act, 2017 to arrest the accused based on the evidence acquired throughout the inquiry. The Department stated that investigations are continuing to identify if any other individuals or entities were involved in the alleged tax evasion