Surat : SGST Department Conducts Raids on Dry Fruit Traders

Surat : In the wake of the Diwali festival, the State Goods and Service Tax (SGST) department launched raids on 15 dry fruit wholesalers and traders across Surat city and district. These raids were initiated following information suggesting substantial sales made without proper billing and invoices during the festive season.

The SGST department has specifically targeted prominent traders in areas like Nanpura, Ghoddod Road, Varachha, and other key zones. Investigations are concurrently underway at 12 different locations within the city, with proceedings anticipated to span two days.

SGST officials mobilized post-Diwali to investigate dry fruit wholesalers and traders suspected of conducting sales without proper documentation. The ongoing probe involves meticulous scrutiny of account books and existing stock across all targeted locations.

Authorities aim to ascertain the actual volume of sales executed during the Diwali festivities. This recent crackdown echoes a previous instance in which 38 hotels in Ahmedabad underwent investigations for reportedly overcharging room rates during the Cricket World Cup, with the aim of ensuring proper tax compliance.

During Diwali, notable dry fruit shops in the city witnessed sales worth lakhs. Sources reveal that a significant number of traders allegedly avoided maintaining accurate stock records, conducting substantial cash sales without proper documentation. Some traders reportedly underreported sales figures or sold goods at inflated prices to mitigate tax liabilities, displaying lower sales in their books.

Deep Upadhyay, a chartered accountant (CA), shed light on the tax rates applicable to dry fruits, citing rates ranging from 5% to 12%, depending on the processing methods. Typically, mixed dry fruits attract varying tax rates, with each item taxed at the maximum applicable rate.