Andhra Pradesh officials probe iron scrap tax evasion network
Special teams are tracking consignments suspected of using fabricated invoices to hide the true origin of locally collected iron scrap.
The Andhra Pradesh GST department is increasing its crackdown on a suspected iron scrap tax evasion network, according to a report by Urban Acres. Special teams have been deployed to monitor consignments believed to be moved using incorrect declarations of origin and fake invoices.
Officials stated that iron scrap collected locally was being transported with documents claiming the material originated in Karnataka and other states. These consignments were allegedly being sent to industrial units in Hindupur and Naidupeta, with suspected tax evasion estimated at hundreds of crores of rupees.
Joint Commissioner A. Bharat Harshavardhan and Deputy Commissioner Srinivasulu Naidu met with Chittoor Collector Sumit Kumar to request assistance from the Transport department. The goal is to check vehicles arriving from other states that are actually carrying scrap collected within the state.
During meetings with iron scrap collectors in Tirupati last week, officials advised them to sell directly to industrial units instead of using middlemen. However, traders told officials that industries are often unwilling to purchase scrap directly from small collectors, making it difficult to avoid intermediaries.
The department is preparing to approach the state government to seek intervention in persuading industries to change their procurement methods. Immediate enforcement steps include route-based monitoring and vehicle scrutiny near industrial units in Chittoor and other linked locations.