Recruitment firm owner held for GST evasion of 6.74cr
Ahmedabad: Officers of the CGST Gandhinagar Commissionerate have uncovered a major tax evasion case involving Xerxes HR Services Private Limited. The human resource firm, primarily supplying manpower services to govt bodies like the Gujarat Pollution Control Board and Gujarat State Seeds Corporation Limited, was found to be collecting but not remitting GST, amounting to Rs 6.74 crore from FY 2017-18 to FY 2023-24.
Acting on specific intelligence, the investigation revealed that the company’s director, Virbhadrasinh Chauhan, had been systematically evading tax by collecting GST at the rate of 18% (applicable on services) but failing to file returns or deposit the collected taxes.
Despite the cancellation of the company’s GST registration due to non-filing of returns, Xerxes HR Services continued to issue taxable invoices with a quoted GST registration number.
