THIRUVANANTHAPURAM: State-wide raid by the Goods and Services Tax (GST) department detected irregularities, including tax evasion in transporting goods through parcel agencies . The intelligence wing of the department registered 238 cases and levied a fine of 5.06 lakh from the offenders.
Tuesday’s raid followed reports of tax evasion and related misconduct in transporting goods by parcel trucks. This is the first-ever statewide move in the parcel services industry, a senior official said.
The raid focused on the major players who contribute more than 80% of the activity. The offenses detected include transporting goods without mandatory documents, failure to possess an electronic waybill and false disclosure of the actual quantity of goods.
“Several state companies are using illegal truck transport of packages to evade tax,” sources said. Electricity, electronics and textiles are the sectors that use this illegal mode the most. These are the main sectors that contribute to the GST. Electronics alone contributed 14% of state GST revenue in 2019-2020.
Road parcel service is a big business in the state, with the major players having 5-10 huge drops in cities. During the raid, officers stopped vehicles immediately after entering the state. Many of them were inspected at GST offices while a few of them had to be examined at parcel offices. The trucks came from different parts of the country.