DGGI uncovers Rs 16.96 crore GST evasion in Karimnagar granite industry

The DGGI has uncovered alleged GST evasion worth Rs 16.96 crore in Karimnagar’s granite industry. Officials arrested a fake agency operator accused of generating bogus invoices and waybills to transport and export granite worth nearly Rs 100 crore without proper tax payments.

Karimnagar: Close on the heels of exposure of violations of Foreign Exchange Management Act (FEMA) in export of granite to foreign countries, another irregularity was unearthed in Karimnagar granite industry.

Though the issue of FEMA violation has not yet concluded, come to conclusion, evasion of GST norms while exporting has now come to light.

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In this regard, the Director General of GST Intelligence (DGGI) officials arrested the organizer of a fake agency for transporting granite while avoiding payment of GST and produced him in the court.

The agency was alleged to have exported about Rs 100 crore worth granite to other places after creating fake invoices and waybills. As a result, the payment of about Rs 16.96 crore GST to the government was avoided.

Though Rs 100 crore worth waybills were generated in the name of the fake agency, the details were not mentioned in GST filing. Noticing it, DGGI officials carried out checks in the agency as well as a few other granite units.

Organizer of the said agency reportedly produced fake way bills and invoices by using his wife’s mobile number. Surprisingly, the accused reportedly utilized one of his friend’s PAN and Aadhar card number to register the agency. It came to light in the DGGI investigation.

The officials also learnt that the accused person played a vital role in the irregularities done by the granite syndicate. The DGGI officials seized granite transported illegally to shops in Serilingampalli and in Ghatkesar. The vehicles transporting granite slabs were seized at Pragnapur.

It is learnt that a person, who is playing a vital role in the granite syndicate during the last few years, is the mastermind behind GST violation. Using his influence in the industry, he used to create fake waybills and invoices.

DGGI officials are planning to take more people into custody.
It may be recalled here that a Rs 749 crore penalty was imposed to granite units for exporting granite to other countries by violating FEMA. The issue is still pending.