BHUBANESWAR: Amid crackdown on rackets involved in fake drug trade in the state, close to two dozen stockists and wholesalers have come under scanner of tax officials for defaulting payment of Goods and Services Tax (GST).
Official sources said the Commissionerate of Commercial Tax (CCT) and GST imposed a penalty of Rs 50.15 lakh on a Bhubaneswar-based agency for defaulting on filing of returns.
The CT and GST Commissionerate had, in fact, sought a list of drugs distributors having high annual turnover after it came to know about tax evasion by some traders involved in sale and purchase of fake drugs during the crackdown in September last.
The drugs control administration had seized the spurious hypertension drugs from two Cuttack based traders after Glenmark Pharmaceuticals Ltd confirmed it did not manufacture the seized batch of medicines and the GST numbers on the consignments were found to be fake.
Sources said the CCT and GST brought under its scope of tax probe a list of 22 drug traders as per the data submitted by directorate of drugs control. The tax officials suspect some of the traders having high annual turnover may be involved in sale of fake drugs.
Of the 22 drug traders, seven are based in Cuttack and two each from Bhubaneswar, Berhampur, Balasore and Jharsuguda. While three drug traders each are based in Rourkela and Balangir and one is operating from Bargarh.
A senior GST officer informed that verification drive was launched to ascertain whether these 22 drug traders are filing returns under the GST Act regularly. “During the drive which is first of its kind to keep track of money flow, we found out mismatch in filing of returns by two firms of Rourkela and Bargarh,” he said.
While the Rourkela-based firm voluntarily deposited Rs 6.05 lakh, the company from Bargarh followed paid Rs 16.87 lakh. However, the CT and GST officials are investigating if there are more dues pending on these two firms.
“The Bhubaneswar-based agency has been fined for defaulting tax payment and verification is on against 21 other traders. Further action will be initiated accordingly,” the official added.
Days back, drug control administration had seized spurious antibiotics and police had arrested a trader in Cuttack.