Gujarat Business Watch
Business

The State Tax Department Crackdown on Unbilled Sales in the B2C Sector; ₹6.54 Crore Tax Evasion Detected

The Department had received specific inputs that certain traders were selling goods without issuing tax invoices and recording transactions through informal slips commonly referred to as “kacchi chiththi”. Following discreet field verification and analysis of the information gathered, searches were carried out on July 8, 2026, at 41 premises of 27 taxpayers engaged in the trading of pan masala, bidi, cigarettes, areca
nut, tobacco, lime and grocery items located in Ahmedabad, Deesa, Palanpur, Patan, Becharaji, Radhanpur, Visnagar, Unjha, Mehsana and Bavla. The searches revealed significant discrepancies between physical and recorded stock, indicating unaccounted sales, non-issuance of invoices and suppression of taxable turnover. Preliminary findings have resulted in detection of Total Tax liability of approximately ₹6.54 crore.
Appropriate proceedings under the Gujarat Goods and Services Tax Act, 2017, have been initiated for recovery of the outstanding dues. The information collected during the operation is also being analysed to identify similar instances of tax evasion in other major B2C sectors.
The Gujarat SGST Department remains committed to ensuring tax compliance, transparency and fair-trade practices. Traders and dealers are advised to issue proper tax invoices for every transaction, maintain accurate records and disclose their actual turnover in GST returns. Any attempt to evade tax will invite strict penal and legal action.

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