Raipur. A sensational revelation has emerged regarding new methods of GST and tax evasion in Chhattisgarh. Across the state—including the capital, Raipur—approximately 3,000 major businesspeople, institutions, and firms have been identified that were brazenly conducting business worth crores using GST registration numbers that had actually been cancelled. Despite the high volume of transactions and trade, these firms were neither filing GST returns nor depositing any taxes with the government. This large-scale, inter-state fraud was exposed through the use of modern AI tools and data analytics employed by the State GST Department.
When government bills and payments were cross-checked using AI tools, it was discovered that payments amounting to crores of rupees were being obtained from various government departments by submitting bills linked to GST numbers that had already been cancelled. Typically, whenever an entity claims Input Tax Credit or a government payment is processed, the details are immediately updated in the tax system. According to a report by *Dainik Bhaskar*, this fraud predominantly involves construction companies, building material suppliers, seasonal goods vendors, and dealers of electrical equipment and furniture. These businesses initially register for GST legitimately; however, as their operations expand and their tax liabilities climb into the lakhs or crores, they cunningly surrender their GST registration numbers.
Just weeks or months after having their GST numbers cancelled, these traders would resume illicit business operations using the very same cancelled numbers, old bill books, and letterheads. Since ordinary customers or buyers rarely verify the GST number printed on a bill, these illegal operations would continue uninterrupted for months. This fraudulent activity was causing a direct monthly revenue loss of crores of rupees to the state exchequer. Following the exposure of the scam, the State Tax Department has swung into action. State GST Commissioner Pushpendra Singh Meena stated that show-cause notices are being issued to all 3,000 identified fraudulent traders. Failure to provide a satisfactory response on time or to deposit outstanding taxes along with heavy penalties will result in the immediate filing of an FIR.
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