Rajasthan tax department expands probe into evasion, false claims

Rajasthan tax department expands probe into evasion, false claims

Rajasthan's State Tax Department detected potential tax liability of ₹22.79 crore at over 25 establishments during its crackdown on suspected GST evasion and fraudulent ITC claims.

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Suspicious Input Tax Credit (ITC) claims and likely liability running into crores of rupees were detected at more than 25 establishments in Rajasthan during the State Tax Department’s campaign against fraud and evasion over the weeks, an official said.

“Departmental investigations revealed a total potential tax liability of Rs 22.79 crore. During the proceedings, the concerned taxpayers have so far deposited or reversed ITC amounting to Rs 17.93 crore. Further action regarding the remaining liability is underway,” a senior department official said on Thursday.

The Goods and Services tax (GST) Department said last week that its surveys at seven establishments had identified potential tax liability of nearly Rs 160 lakh. During the proceedings, some taxpayers voluntarily deposited Rs 70.59 lakh.

“Significant documents and records were seized or documented in several cases, and further investigations are underway,” said the official.

“A survey was conducted at Angstrom Biotech in Bhiwadi on September 18. The investigation revealed that ITC had been claimed on purchases made from a supplier whose GST registration had already been cancelled prior to the date of the purchases. A potential tax liability of Rs 60 lakh was identified in the matter, against which the taxpayer voluntarily deposited Rs 29.23 lakh,” he said.

Excess ITC claims by Sevada Trading Company in Sardarshahar town, Churu district, from FY22 to FY26 were detected, said the official. The investigation identified a potential liability of Rs 54.14 lakh, comprising Rs 27.07 lakh each in central and state GST. The company voluntarily deposited Rs 10 lakh.

An inspection of K P Infra, Jodhpur, last week revealed GST tax deducted at source reporting of Rs 2.76 crore, although the company had not filed the required returns after February 2026. A potential tax liability of Rs 40 lakh has been determined in the matter.

Action has been taken against other companies in the state and the exercise would continue, said the official.

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Topics : Income tax tax evasion GST rajasthan input tax credit

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First Published: Sep 25 2026 | 6:53 PM IST

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