GST Scam: Chhattisgarh GST Dept. Uncovers Rs. 1 Crore Tax Evasion in Medical Supplies Worth Rs. 48 Crore
GST Scam: Chhattisgarh GST Dept. Uncovers Rs. 1 Crore Tax Evasion in Medical Supplies Worth Rs. 48 Crore
The Chhattisgarh GST Department has uncovered a huge GST evasion scam of Rs. 1 Crore. The investigation has started against Raigarh-based M/s Shyam Surgical. When the raid was conducted by the GST department, they detected GST evasion of 1 crore. This company is engaged in supplying medical and surgical equipment to government hospitals situated in Chhattisgarh, as well as in Jharkhand and Odisha.
From the previous 4 to 5 years, M/s Shyam Surgical has supplied a total of goods worth Rs. 48 crore to the health department; however, not all those supplies were actually delivered in real life. When investigated, officials discovered a total supply of only Rs. 10 crore. Meaning, an actual profit of 400 to 500 per cent was made.
The company reportedly created three bogus companies named Rahul Enterprises, Narayani Healthcare, and P R Enterprises in the names of family members. These fake companies were used to transfer money around between themselves in a way that made it look like they were really buying goods or services at normal market prices. In reality, this was done to hide the fact that they were increasing prices on purpose. By doing this, the company was able to take out profits secretly and avoid paying the full amount of taxes.
On the instructions of O P Choudhary, the state GST department started an investigation into this case. This case is a broader directive released by Chief Minister Vishnu Deo Sai. The Chhattisgarh government has strictly warned all government suppliers and contractors that if any individual tries to earn profit by misusing the government system, they can suffer strict consequences.
The press release issued by the Chhattisgarh government says, “The audit of the allegedly accused firm, M/s Shyam Surgical, which supplies surgical and medical equipment to govt hospitals across Chhattisgarh, Jharkhand, and Odisha, is accused of evading over Rs 1 crore. The investigation, launched after a detailed audit of the firm’s dealings with the state health department, revealed that M/s Shyam Surgical supplied medical goods worth Rs 48 crore over the last 4-5 years. The actual purchase value of these goods was just around Rs 10 crore. Authorities say the company inflated prices by up to five times, pocketing illegitimate profits between 400-500% on critical health supplies.”