Officers of the CGST Gandhinagar Commissionerate have uncovered a major tax evasion case involving Xerxes HR Services Private Limited. The human resource firm, primarily supplying manpower services to govt bodies like the Gujarat Pollution Control Board and Gujarat State Seeds Corporation Limited, was found to be collecting but not remitting GST, amounting to Rs. 6.74 crore from FY 2017-18 to FY 2023-24.
Acting on specific intelligence, the investigation revealed that the company’s director, Virbhadrasinh Chauhan, had been systematically evading tax by collecting GST at the rate of 18% (applicable on services) but failing to file returns or deposit the collected taxes.
Despite the cancellation of the company’s GST registration due to non-filing of returns, Xerxes HR Services continued to issue taxable invoices with a quoted GST registration number.
Upon scrutinizing bank statements, financial records and information from various government departments, Gandhinagar CGST officials discovered that the form had created bogus financial records to conceal substantial service charges and GST collections. This sophisticated scheme allowed them to operate undetected for several years.
Chauhan was arrested on Thursday under Section 69 of the CGST Act, 2017. Following his arrest, he was medically examined and presented before the additional chief metropolitan magistrate in Ahmedabad, who remanded him to judicial custody for 15 days starting Friday.
During interrogation, Chauhan confessed to the tax evasion. The CGST Gandhinagar Commissionerate has been rigorously using intelligence and data analytics to detect and prevent such cases of tax evasion, ensuring compliance and safeguarding the state exchequer.
Source: The Times of India
Share this content: