GST Authorities Target Car Accessory and Auto Parts Outlets in Statewide Raids

• Dussehra Boost in Automobile Sales: The automobile sector experienced a sales boost during the Dussehra festival in Gujarat.

• GST Raids on Multiple Locations: The Goods and Service Tax (GST) department conducted raids on Oct 27 in four major cities of Gujarat to uncover tax evasion.

• Extensive Investigation: The tax department investigated about 72 locations involving 46 dealers of car accessories and auto parts across the state.

• Uncovered Tax Evasion: During the investigation, tax evasion amounting to ₹6 crore was discovered, and ₹1.50 crore was recovered from the traders.

• Raids in Different Cities: Different teams of GST officials raided 35 auto parts and accessories dealers in Ahmedabad, 12 in Surat, 12 in Vadodara, and 13 locations in Rajkot, a hub for auto parts manufacturing.

• Tax Evasion Methods: Traders were found to be conducting transactions without proper record-keeping, goods were misclassified, and tax was paid at a lower rate. Some traders were also collecting tax separately from customers despite benefits from the composition scheme.

• Operating Without Registration: The raids also revealed that some auto parts dealers were operating their businesses without proper registration.

• Previous Similar Raid: In a recent GST department raid on 79 mobile phone shops, tax evasion of ₹22 crore was uncovered, and 500 mobile phones were seized, as they had been sold without proper billing. Source : https://www.gujaratsamachar.com/news/gujarat/gst-raids-at-car-accessories-auto-parts-dealers-in-four-major-cities-in-gujarat