Assam Launches Statewide Crackdown on Tax Evasion, Uncovers ₹5.8 Crore Fraud

The Assam government’s State GST department has unearthed tax suppression and evasion amounting to approximately ₹5.8 crore during a series of coordinated raids across Barpeta Road, Jorhat, and Tinsukia. This was confirmed in an official statement released on Friday by the Finance (Taxation) Department. The crackdown focused on identifying businesses involved in fraudulent tax practices, including sales suppression, misclassification of goods, and the generation of false Input Tax Credit (ITC) claims.

The operations were part of a state-wide initiative to safeguard government revenue and ensure compliance with GST laws. Authorities conducted search and seizure actions at several commercial establishments suspected of evading taxes. The raids revealed a range of financial discrepancies and manipulations in records, highlighting how certain businesses were deliberately attempting to underreport their turnover and exploit the tax credit system.

Barpeta Road: Suppression of ₹3 Crore Turnover

At Barpeta Road, GST officials raided the premises of M/s Apsara Beej Bhander on Thursday. Upon inspection, they found clear inconsistencies between the physical stock and the audited records submitted for tax purposes. According to preliminary assessments, the business had suppressed turnover worth an estimated ₹3 crore. This led to an initial detection of tax evasion amounting to about ₹15 lakh. However, officials noted that final figures would only be confirmed after a comprehensive audit and verification process is completed.

Tinsukia: Fake ITC Claims and Zero SGST Payments

In Tinsukia, another significant case of evasion was uncovered when GST officers raided Jain Marketeers. The investigation revealed that the company had claimed ineligible ITC and had made no SGST payments in cash. This led to a preliminary finding of around ₹20 lakh in tax evasion and a suppressed turnover of approximately ₹80 lakh. The case underscores the misuse of the ITC system, which allows businesses to reduce their tax liability by claiming credits on inputs, but only if the claims are legitimate and well-documented.

Jorhat: ₹2 Crore Evasion at Glass Décor Firm

Meanwhile, in Jorhat, the GST unit had earlier raided M/s Dolly Glass and Décor on June 11. Evidence gathered from E-way bills, trading accounts, and sale-purchase registers pointed to serious irregularities. The proprietor admitted to suppressing sales and purchases, leading to an estimated tax evasion of ₹2 crore. The confession, backed by documentation, confirmed deliberate attempts to manipulate financial data to reduce tax liability.

Government’s Stance and Further Action

The Finance (Taxation) Department stated that such operations are critical for maintaining fiscal discipline and protecting public funds. The department emphasized that the raids serve as a strong warning to dishonest taxpayers. "This is a clear message that tax malpractices will not be tolerated,” said a departmental spokesperson, noting that legal consequences await those found guilty.

Officials indicated that further verifications are ongoing and did not rule out arrests or additional legal proceedings as the investigations progress. The recent crackdown reinforces the state government’s commitment to enforcing tax laws and promoting fair business practices across Assam.