Rajasthan’s state tax machinery has stepped up its scrutiny of suspicious GST credit claims, and the latest round of field action has already yielded sizeable recoveries and reversals. According to a press release from DIPR Rajasthan, officers carried out surveys and inspections at five establishments across different districts, flagging a combined potential tax liability of ₹22.79 crore.
The department said taxpayers involved in the cases have so far deposited cash or reversed input tax credit worth ₹17.93 crore, while proceedings continue on the balance amount. The action underscores a broader compliance push against tax evasion and questionable input tax credit, a recurring pressure point in GST enforcement where mismatches, cancelled registrations and delayed filings often draw scrutiny.
Five cases, one enforcement drive
The department’s latest sweep covered businesses in Bhiwadi, Sardarshahar, Jodhpur, Barmer and Jaisalmer. Each case involved a different compliance issue, ranging from purchases linked to cancelled GST registrations to unexplained credit claims and reporting gaps in tax returns. Officials said the cases were identified during ongoing checks aimed at detecting evasion and irregular ITC utilisation.
In aggregate, the department said the cases have already triggered voluntary payments and reversals across the board. While some taxpayers made partial deposits on the spot, others indicated that dues would be cleared within a few working days. The department has not said whether further penalties or adjudication will follow, but the recoveries suggest the initial compliance pressure has been effective.
Bhiwadi firm flagged for credit linked to a cancelled supplier
In Bhiwadi, Angstrom Biotech Pvt. Ltd. came under survey on 18 September. The check found that the business had claimed input tax credit on purchases from a supplier whose GST registration had already been cancelled before the relevant transaction date, the release said.
Officers assessed the likely tax exposure at ₹60 lakh. Against that amount, the taxpayer has already made a voluntary deposit of ₹29.23 lakh. Such cases have become a focus area for tax authorities because credit claims linked to inactive or cancelled suppliers can distort the GST chain and create revenue leakage if not detected early.
Churu trader under lens for excess ITC claims
Sevada Trading Company in Sardarshahar, Churu, was examined for the financial years 2021-22 through 2025-26. The department said the business was found to have claimed excess input tax credit during the period under review.
Officials identified a potential liability of ₹54.14 lakh, split equally between CGST and SGST at ₹27.07 lakh each. The taxpayer has deposited ₹10 lakh so far. For the department, such cases are important not only for immediate recovery but also because they often reveal patterns of repeated over-claiming across multiple tax periods.
Jodhpur inspection highlights GST TDS reporting mismatch
In Jodhpur, K P Infra was inspected on 21 September. The department said the business had reported nearly ₹2.76 crore in GST TDS, but had not filed GSTR-3B returns after February 2026, indicating a significant compliance gap in return filing.
On that basis, officers estimated a potential tax liability of ₹40 lakh. The taxpayer has informed officials that the amount will be deposited within the next two to three working days. The case is notable because it combines reporting of tax deducted at source with a failure to keep regular return filings current, a combination that can quickly escalate into broader enforcement action if left unresolved.
Barmer and Jaisalmer cases add to the enforcement tally
In Barmer, MA Sambhara Ashapura Enterprises was surveyed on 19 September. The business, which is linked to vehicle rental and accommodation services, was found to have claimed and used input tax credit from taxpayers whose registrations were cancelled ab initio or otherwise cancelled. The department said the arrangement appeared to violate provisions under CGST and RGST.
The likely liability in that case was pegged at ₹24.61 lakh, with ₹8.19 lakh already deposited by the taxpayer. Such findings are significant for service-sector businesses, where vendor verification and registration status can directly affect the legitimacy of credit claims.
Jaisalmer saw the largest exposure in the department’s latest round. CGE II Hybrid Energy Pvt. Ltd., which operates in the solar and renewable energy space, was surveyed on 18 September. Officials said irregularities were found in the reversal of IGST input tax credit relating to earlier financial years.
The potential tax liability in this case was placed at ₹21 crore. Following the action, the company reversed ₹16.72 crore of IGST ITC linked to prior periods. That single case accounted for the bulk of the total exposure identified in the department’s five-case drive.
What the numbers suggest for GST compliance
The latest action is a reminder that GST enforcement in Rajasthan is increasingly focused on data-driven checks around ITC, filing discipline and the authenticity of supplier chains. The fact that ₹17.93 crore has already been deposited or reversed against a total potential liability of ₹22.79 crore indicates that the department is securing substantial amounts even before disputes move into a longer adjudication cycle.
For businesses, the cases also reflect a wider compliance message. Claims tied to cancelled registrations, delayed return filing and mismatched credit reversals are drawing quick attention from tax authorities, especially where the amounts are large or the transactions span multiple financial years. As the remaining dues are pursued, the current drive is likely to feed into tighter verification practices across sectors and districts.
The department said follow-up action is continuing on the outstanding amounts. The latest round suggests that the state’s tax administration is keeping pressure on suspected evasion while also using field-level surveys to prompt immediate voluntary compliance, a strategy that can yield fast recoveries without waiting for prolonged litigation.
Source from: https://rajasthan.economictimes.indiatimes.com/news/economy/rajasthan-tax-department-widens-scrutiny-of-suspicious-gst-credit-claims-across-five-districts/134477414
