The Rajasthan State Tax Department has identified ₹22.79 crore in potential tax liabilities across 25 businesses following a crackdown on GST evasion. Authorities have already recovered ₹17.93 crore. This initiative highlights the government's strict focus on checking Input Tax Credit claims and ensuring regular tax filing compliance among commercial entities.
The Rajasthan State Tax Department has intensified its scrutiny of commercial entities, leading to the identification of ₹22.79 crore in potential tax liabilities. Recent site inspections across 25 establishments have revealed significant discrepancies, with authorities already securing the recovery or reversal of ₹17.93 crore. These actions are part of a broader regulatory effort to curb systemic tax evasion and ensure strict compliance with Goods and Services Tax (GST) rules.
Patterns of Non-Compliance
The department's investigations have highlighted specific operational risks in tax reporting. At Angstrom Biotech in Bhiwadi, officials found that the firm had claimed Input Tax Credit (ITC) from a supplier whose GST registration had already been cancelled. This led to an identified liability of ₹60 lakh, with the company opting to deposit ₹29.23 lakh voluntarily during the inspection.
In another case, an audit of Sevada Trading Company in the Churu district uncovered improper ITC claims that spanned multiple fiscal years, resulting in a liability of ₹54.14 lakh. The company has since deposited ₹10 lakh toward the outstanding amount. These findings underscore the importance of maintaining accurate records of supplier registrations and the verification of ITC claims, which are critical for avoiding penalties and tax assessments.
Administrative Oversight and Enforcement
Beyond ITC issues, the department is also focusing on administrative compliance. An inspection at K P Infra in Jodhpur revealed that the firm had not filed necessary GST returns since February 2026, despite reporting Tax Deducted at Source (TDS) figures of ₹2.76 crore. This discrepancy prompted the department to raise a liability assessment of ₹40 lakh.
State officials have confirmed that these inspections involved the physical seizure of financial records to verify the reported data. For businesses, such enforcement actions serve as a reminder that regulatory scrutiny is moving toward a more data-driven approach, where mismatches in filing returns or irregularities in supplier claims are detected quickly.
The primary monitorable for businesses in the current regulatory environment remains the accuracy of their tax filings and the validity of their input tax claims. As the tax department continues its initiative to ensure adherence to GST regulations, companies are expected to maintain robust internal controls over their tax accounting. The success of these enforcement measures, indicated by the partial recovery of dues, suggests that authorities are likely to continue such targeted investigations to protect revenue and curb non-compliance.