Raids On Pan Masala Trader's Premises Over Alleged Tax Evasion In Uttar Pradesh's Kanpur Cause Stir

Sources said that the raids were carried out by a 30-member team over alleged tax evasion by the pan masala trader.

Kanpur: Raids by the Directorate General of GST Intelligence (DGGI) at the premises of a pan masala trader in connection with alleged tax evasion in Uttar Pradesh's Kanpur have caused stir in the area.

It is learnt that the raids were carried by a team of around 30 sleuths reportedly from the DGGI Gurgaon and Lucknow offices a few days ago at the premises of a factory owned by a noted pan-masala businessman in Panki area. Sources said that the DGGI team carried out the raids for more than 24 hours after which the factory was sealed.

The team has also seized incriminating documents established tax evasion from the premises of the factory, sources said.

While the DGGI was yet to issue an official statement over the raids, sources said that the DGGI teams are investigating many bogus companies created for alleged tax evasion. Earlier also in the year 2021, the Income Tax Department had raided many premises of the pan masala group. The matter of bogus companies had come to the fore at that time as well.

Sources said that the family members of the pan masala group are out of town. The employees who were working in the office till now have also stopped coming to the office as per sources.

The government in August notified October 1 as the date for implementation of the penalty provision for pan masala and similar tobacco products manufacturers in case they fail to register their packing machinery with GST authorities.

On August 6, the Central Board of Indirect Taxes and Customs (CBIC) notified October 1, 2024, as the date for levy of up to Rs 1 lakh penalty for failure to register their packing machines with GST authorities. Earlier, in May and June also, the GST Network had notified two forms GST SRM-I and II for registering machines used by such manufacturers and to report inputs procured and corresponding outputs with tax authorities.