NEW DELHI: With the wedding season fast approaching, Central GST authorities have stepped up their scrutiny of lehenga, suits, and saree sellers in Delhi’s bustling Chandni Chowk market. These dealers are under investigation for suspected GST evasion and other illicit practices.

According to sources within the GST department, many of these traders engage in cash transactions throughout the year, especially during the peak wedding season when demand is high, allowing them to avoid paying GST on their sales.

Additionally, it has been alleged that these dealers use fraudulent invoices to claim input tax credits for payments made through official banking channels. Investigations have revealed two main methods of tax avoidance: non-payment of GST on outward sales and improper claims for input tax credits.

Sources suggest that a significant number of dealers accept cash payments but do not report these transactions, thus evading GST liabilities. This practice becomes more prevalent during the wedding season when sales volumes increase.

For payments made via cheques or other traceable methods, dealers are accused of using fake invoices to claim input tax credits, thereby lowering their GST obligations.

Such actions not only lead to substantial revenue losses for the government but also create unfair competition for businesses that comply with the law. Over the past month, GST authorities have conducted search operations at numerous businesses involved in such practices.

In addition to concerns over tax evasion, the investigation has uncovered troubling issues regarding property disputes in areas like Chandni Chowk and Pusa Road. Several traders occupying rented spaces are said to be refusing to vacate despite receiving legal eviction notices.

These tenants are reportedly paying as little as Rs 100 per month in rent for properties worth crores, even though they do not operate their businesses from these locations. Landlords have raised concerns that these dealers may be using coercive tactics to hold onto these properties.

GST authorities are expected to take strict action against the violators to ensure compliance and prevent future wrongdoing. However, resolving property-related issues may require broader legal reforms and more effective enforcement, according to sources.