Following a successful operation by Central GST officials targeting iron and scrap dealers, which revealed tax evasion amounting to lakhs of rupees, state GST officials have now discovered details of crores in GST evasion and unbilled sales. This revelation came during preliminary investigations after raids on ice cream parlours, juice centres, and food outlets. The three-day operation extended into Sunday, and sources within the department suggest that the probe will likely expand to include many traders involved in the ice cream and juice trades.

The investigation was prompted by widespread complaints that well-known establishments in Ahmedabad, such as Patel Ice Cream and Astodia Juice Centre, along with Surat’s Bismillah and Mahalakshmi Juice and Fast Food Centre, were not issuing proper bills. Upon receiving the go-ahead from Gandhinagar, the department launched the investigation.

Since May 30, GST enforcement teams have raided 24 prominent traders in Ahmedabad, Surat, and Rajkot, all of whom have turnovers in the crores. The investigation, now in its fourth consecutive day, has covered 47 premises associated with these traders, uncovering unbilled transactions worth Rs 40 crore in the preliminary findings. This includes Rs 30 crore in unbilled ice cream sales, Rs 6.75 crore in unbilled bhajiya sales, and Rs 4 crore in unbilled pizza sales.

Bismillah, a well-known brand in Surat and the largest seller of thick shakes in Gujarat, is also under scrutiny. The brand reportedly opened 29 outlets in Ahmedabad without formal contracts or agreements to evade GST, and these outlets are now under investigation.

Benami Bank Accounts on Rent?

Investigations have revealed that some individuals are renting bank accounts from needy people to establish bogus firms and fraudulently claim input tax credits, parking the illicit money in these accounts. In the case of ice cream parlours and juice centres, there were also arrangements to deposit money into these rented accounts through QR codes. Officials are actively investigating this angle, according to sources.