Rajasthan’s commercial tax department has tightened its grip on suspected GST evasion, with a fresh enforcement drive uncovering possible irregularities worth nearly ₹2.85 crore across multiple districts. According to a release from the state’s Department of Information and Public Relations, traders and business entities in Jaipur, Ajmer, Beawar, Didwana-Kuchaman, Khairthal-Tijara and Phalodi were inspected over 12 and 13 October, and several of them opted to pay or reverse tax amounts during the course of the checks. First reported by Department of Information and Public Relations, Rajasthan.
The department’s action comes at a time when tax administrations across India are leaning more heavily on data matching, stock verification and invoice scrutiny to detect mismatches in GST returns. In Rajasthan, the latest round of checks has focused on three recurring pressure points in the indirect tax system: bogus or ineligible input tax credit, sales conducted without proper billing, and concealment of actual turnover. Officials said the exercise is part of a wider effort to protect revenue and create a fairer competitive environment for compliant businesses.
Jaipur cases flag construction-related credit claims
Two of the most closely watched cases emerged in Jaipur, where the department examined credit claims linked to property and resort construction. In Jhotwara, M/s Sterban Resorts Private Limited was checked for the eligibility of input tax credit connected with resort construction. During the proceedings, the taxpayer reversed ₹55.26 lakh of ITC.
In a separate Jaipur action at C-Scheme, M/s AGRS Ventures LLP came under scrutiny over ITC linked to construction of immovable property. The department said the case pointed to ineligible credit of about ₹1 crore, and the taxpayer reversed ₹99.76 lakh through ITC during the inspection.
These cases reflect a broader compliance challenge in real estate-linked works, where the line between eligible business input and blocked credit often becomes a subject of dispute. For tax authorities, such cases are significant because construction-related credit claims can quickly inflate refund or offset positions if not backed by proper documentation and statutory eligibility.
Ajmer and Beawar inspections turn up stock and billing gaps
Ajmer district saw action against several traders, with the department moving from one business model to another, including steel, timber, plywood and agency operations. At M/s Maruti Steel Industries in Kekri, officials physically verified stock linked to furniture manufacturing and household supply. Business records and a pen drive containing electronic data were seized for examination. The department estimated possible tax irregularities of around ₹15 lakh, while the taxpayer deposited ₹10 lakh into the SGST cash ledger.
At M/s Asam Timber and Plywood on Pushkar Road in Ajmer, the department acted on suspicion of sales without proper tax invoices and concealment of business activity. Stock was physically checked and questionable documents were taken into custody. Initial estimates put the possible tax irregularity at about ₹8 lakh.
A third Ajmer case involved M/s K.C. Agencies in Kaiserganj, where officials alleged violations of the composition scheme, sale of goods without bills of supply and concealment of actual turnover. The inspection indicated unaccounted stock worth roughly ₹10 lakh, with potential tax liability estimated at ₹15 lakh to ₹20 lakh. The taxpayer voluntarily handed over a cheque for ₹15 lakh.
In Beawar, M/s Ashok Timber Traders was inspected following information about sales without bills. The department seized 15 business records as exhibits. Officials estimated a possible tax irregularity of ₹10 lakh to ₹15 lakh, and the taxpayer deposited ₹6 lakh through a challan.
Didwana-Kuchaman and Khairthal-Tijara add to the compliance picture
In Didwana-Kuchaman, M/s Maheshwari Plywood and Hardware was checked on the basis of inputs suggesting purchases and sales without proper billing, along with attempts to settle tax liability through ITC. The inspection indicated possible tax irregularities of ₹7 lakh to ₹8 lakh. The taxpayer deposited ₹7 lakh into the cash ledger, and suspicious documents found at the premises were seized for further inquiry.
Khairthal-Tijara district, meanwhile, brought a return mismatch into focus. At M/s Vans Aluminium Design LLP in the RIICO industrial area, officials analysed data available on the department’s portal and found a discrepancy of ₹53.89 lakh in tax liability across returns. The gap included ₹15.74 lakh in financial year 2025-26 and ₹38.15 lakh in 2026-27. During the action, the taxpayer voluntarily deposited ₹22.21 lakh, while the remaining liability and related irregularities are still under examination.
Phalodi case points to credit misuse and undeclared sales
In Phalodi district’s Bap area, M/s S.K. Crane Service was inspected after discrepancies emerged between GSTR-2B and GSTR-3B, along with signs of ineligible ITC usage. The department said ITC worth about ₹15.74 lakh could not be supported by proper documents. Officials also found indications that credit had been claimed on items used for personal purposes, while the sale of a DG set valued at around ₹25 lakh was not reflected in regular sales records. The taxpayer deposited ₹15,74,004 during the proceedings.
Why the department sees this as more than a one-off drive
The latest enforcement round underlines how GST compliance checks are increasingly being driven by data analytics, not just physical inspections. Differences between return filings, stock positions and invoice trails can expose patterns that were once harder to detect. For businesses, especially those in trading, construction and equipment services, the message is clear: documentation gaps can quickly become tax exposures, even when the underlying transactions are routine.
Officials said the department will continue examining documents, electronic records, stock statements and taxpayer submissions to determine the final liability. Where required, action will proceed under the provisions of the GST law. The objective, the release indicated, is to safeguard revenue, strengthen transparency in tax administration and ensure that compliant taxpayers are not placed at a disadvantage by those under-reporting turnover or misusing credit.
The special enforcement campaign, the department added, will remain in force as scrutiny of suspected GST evasion, bogus credit and unbilled sales continues across the state.
Source from: https://rajasthan.economictimes.indiatimes.com/news/policy/rajasthan-steps-up-gst-scrutiny-as-multiple-traders-reverse-credits-and-pay-dues/135042161
