Indore (Madhya Pradesh): Sleuths of Central Goods and Service Tax (CGST) have detected GST evasion worth crores of rupees while carrying out search operations at GH Garments and Sun Rise Garments, both top-notch broking firms based in the city, dealing with readymade garments and textile items.
The officials are still calculating the exact amount of evasion, but the action has sent shockwaves not only in the city but also in cities like Delhi, Bellary and Ludhiana among others.
Traditionally, city remains the hub of the readymade garments business of Central India, from where readymade garments are supplied to Rajasthan, Maharasthra, Karnataka, Gujarat and even UP and Chhattisgarh.
Official sources informed here on Saturday that the search operation at GH Garments located in Tilak Path and Sunrise Garments located in Rajwada area started on Friday afternoon and continued till Saturday afternoon.
Sources said that between them the two companies account for about 80% trade readymade garments trade of the city. Both the companies used to take the goods directly from the factory to the outlets of the wholesale customers. GH Group has about 16 branch offices across the country.
‘A large number of documents of tax evasion have been recovered from both the groups, which includes electronic evidence,' an official said.