Rajasthan's GST Department Cracks Down on Tax Evasion

Tax Evasion Investigation in Rajasthan

In Jaipur, the Rajasthan State GST and Commercial Tax Department has launched a special initiative against tax evasion. The Enforcement Branch-III conducted searches at multiple locations associated with Prem Green Private Limited and four other related firms.

These companies are involved in the manufacturing and sale of henna powder, henna cones, hair color, and various beauty products. They procure henna locally from Sojat, Pali, and manufacture different products for distribution across various states. According to information received, these firms have reportedly caused significant revenue loss to the state government by obtaining illegal input tax credits without actual supply of goods from various firms linked to their family group over the years. An analysis on the departmental GST portal suggests that these firms may have evaded approximately ₹35 crore in taxes over the past five years.

The Enforcement Branch-III formed five teams to simultaneously conduct searches at the firms' locations in Pali and Jaipur. During the searches, discrepancies were found between the stock recorded in the firms' accounts and the actual stock present at their business premises, leading to a deposit of ₹99.62 lakh into the state treasury by the business owner. The investigation is ongoing, focusing on the legitimacy of the tax claims, stock discrepancies, e-way bills for goods supplied outside the state, and other related documents.