Central GST commissionerate (CGST) conducted raids on 16 premises, including 11 factories and five homes, belonging to 10 bicycle manufacturing companies of Ludhiana. Close to 50 officers and staff of the department, under instructions from CGST principal commissioner Ashutosh Baranwal, started the action simultaneously at these premises on Wednesday morning, causing panic among businessmen. As soon as the news spread, several bicycle manufacturers and traders called it a day off. Raided units include a leading cycle manufacturer on Gill Road, besides those in Giaspura, Daba Road, Focal Point and other locations. The department officials said the action was led by deputy commissioner, preventive, Daljit Kaur and conducted on the suspicion of tax evasion by these firms by indulging in undervaluation of bicycles being manufactured by them.
All the raided firms are medium-scale factories that manufacture for local and export markets. Sources said some of the firms were doing undervaluation of almost 50%, meaning if a bicycle was sold by them for Rs 8,000, it was being billed for Rs 4,000 and huge amount of GST was being evaded. However, as of now it was not clear whether all the firms were involved in the practice and how much GST evasion was done, but sources said officials have found incriminating documents from some premises and action would continue on Thursday as well.
Read More at: https://timesofindia.indiatimes.com/city/ludhiana/city-bicycle-firms-owners-face-tax-heat/articleshow/70579148.cms