Bicycle firms’ owners face tax heat in Ludhiana when Central GST commissionerate (CGST) conducted raids on 16 premises, including 11 factories and 5 homes belonging to 10 bicycle manufacturing companies.
After the instructions issued by Ashutosh Baranwal (CGST principal commissioner), around 50 officers and staff of the department started the action simultaneously at these premises on Wednesday morning. Consequently, it created panic among businessmen and several bicycle manufacturers and traders called it a day off.
Some of the units which have been struck include a leading cycle manufacturer at Gill Road, another at Giaspura, Daba Road, Focal Point and other locations.
All the raided firms are medium-scale factories that manufacture for local and export markets. Sources said there is an undervaluation of bill to evade tax on sales.
Some of the firms were doing undervaluation of almost 50%, meaning if a bicycle was sold by them for Rs 8,000, it was being billed for Rs 4,000 and huge amount of GST was being evaded.
However, as of now it was not clear whether all the firms were involved in the practice and how much GST evasion was done, however, officials have found incriminating documents from some premises and action would continue on Thursday as well.
The department officials said the action was led by deputy commissioner, preventive, Daljit Kaur and conducted on the suspicion of tax evasion by these firms by indulging in undervaluation of bicycles being manufactured by them.