Hyderabad : Directorate General of GST Intelligence (DGGI), Hyderabad, has detected alleged GST evasion of ₹23 crore in Karimnagar’s granite industry after inspections uncovered significant discrepancies in granite volumes, specific gravity declarations and statutory records maintained by quarry operators and exporters.
The alleged evasion came to light during inspections carried out at six granite quarries and their associated processing units, where DGGI officials cross-verified shipping bills, L-forms, stock registers and other statutory declarations.
Several granite exporters declared specific gravity values as high as 4.7, far above the average range of 2.65 to 3.2, according to the investigation. Officials estimated the alleged tax shortfall across the granite industry in Karimnagar at ₹23 crore. You Can Also Check: Gold Rate in Hyderabad | Silver Rate in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad | Hyderabad AQI | Weather in Hyderabad | Petrol Price in Hyderabad | Diesel Price in Hyderabad | CNG Price in Hyderabad | LPG Price in Hyderabad Stay updated with the latest Hyderabad news.
The findings point to the alleged underpayment of GST through discrepancies in the physical quantities and measurements declared by granite operators, according to DGGI. Officials suspect that the inflated figures led to underpayment of GST under the reverse charge mechanism (RCM), as seigniorage and other mining revenues are calculated largely based on granite volumes. The six quarries inspected were Sri Venkatesh Granites Pvt Ltd, PSR Granites, Sri Vishnu Granites, Shri Nidhi Granites, Sandhya International Granites and Sri Sai Balaji Multi Colour Rocks in Karimnagar. During the inspections, DGGI officials reportedly found mismatches between the closing stock maintained by quarry operators and the quantities reflected in statutory records. The probe focused on discrepancies in granite volumes and specific gravity declarations that have a direct bearing on mining-related payments and the corresponding GST liability. The inspections also extended to associated factories, where officials cross-checked shipping bills and L-form records against stock declarations and granite volumes. Download the TOI App.
Officials noted that similar allegations had surfaced earlier as well, with GST authorities and state vigilance and enforcement officials previously conducting investigations into comparable methods allegedly adopted by some Karimnagar-based granite companies.