In an action against massive tax evasion, the Directorate General of GST Intelligence (DGGI) has recovered Rs 74.86 crore from a major tobacco manufacturer located in Ahmednagar district of Maharashtra, an official said on Tuesday. Based on specific information, the Sangam-based manufacturer and supplier was discovered in April at various commercial premises, a release issued by DGGI said.
Unmanned tobacco attracts the highest rate of Goods and Services Tax (GST), which is almost equal to the value of the goods and the scope of mass theft in the area, it was stated.
GST on unmanned tobacco is 28 per cent and 71 per cent compensation cess.
The release said that several secret documents and computerized records were seized and an analysis revealed that the company had withdrawn large amounts of tobacco without paying any GST. Further investigation has also revealed that there was a huge theft of GST (5 per cent GST) payable by the company on reverse charge on tobacco leaves purchased directly from farmers.
The brand is popular all over the country and its products are consumed not only in Maharashtra, but also in many other states. The release said that the company paid Rs 74.86 crore in April in lieu of payment of interest along with its liabilities.