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GST caught tax evasion on business running in the name of a dead person for 11 months

A late businessman was doing business for 11 months in Partaval of Maharajganj. Purchased Rs 11.73 lakh from his firm through 13 e-way bill. The GST team has detected tax evasion and mismanagement in the investigation. Not only this but the firm was also being run in the name of the deceased’s wife. A fine of five lakh rupees has been imposed for finding disturbances in its stock.

The Goods and Services Tax SIB team had received information that large-scale tax evasion was going on in a garment shop at Paratawal in Maharajganj. In the last six months, the GST team was collecting evidence at the said shop on festivals and other occasions.

When the shop was inspected on Monday under the leadership of Deputy Commissioner Sunil Verma, it was found that the registration of the shop was in the name of the proprietor Shamshul Haque. Haq died in March 2022, but no legal action was taken by the family in this regard.

For example, the name of the firm, name of the proprietor, account number, etc., have not been changed. The business continued under the old name and address and account number. The firm has issued e-way bills by booking garments in bulk from traders in Lucknow and Kanpur, apart from Gorakhpur.

At the same time, another establishment was also found in the same place. Another firm was being operated in the name of Shamshul Haq’s wife Najra Khatoon. During the investigation in this firm, there was no physical evidence of stock being kept in the shop along with the sale. GST has imposed a fine of Rs 5 lakh on this firm.

The help from district administration had to be taken at the time of action

Additional Commissioner Grade-I Vimal Kumar Rai said that two firms in Maharajganj were being monitored. A firm was carrying on business in the name of the deceased proprietor. In the second firm, the business was going on in the name of the wife of the deceased. Action has been taken as per the rules.

When the GST team reached the businessman’s premises in Partaval for action, a crowd gathered. The team had gone to investigate on behalf of GST in six vehicles. Suddenly seeing themselves surrounded, the GST team sought cooperation from the district administration. DM and SDM supported the GST team by sending teams.

It is wrong to do business in the name of the deceased

Doing business in the name of a deceased person is wrong. A GST official told that if the business is being done in the name of the deceased, then it comes under the category of economic offense along with another businessman. For example, bought and sold lakhs of rupees from another trader in the name of the firm. In return, the firm can refuse while recovering that amount from the deceased. After this, the matter may come to fraud and forgery.


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