Mumbai : 30 July 2026

In a major crackdown on tax evasion within the real estate and construction sector, the Anti-Evasion (AE) Wing of the Central Goods & Services Tax (CGST) Commissionerate, Kolhapur, executed simultaneous search and inspection operations across seven leading builder and developer firms in Kolhapur on Tuesday (28th July 2026).

The coordinated drive was carried out under the direction and guidance of senior departmental officers. The action was initiated after detailed data analytics and risk assessments flagged significant irregularities relating to Input Tax Credit (ITC) utilization and non-payment of tax liabilities by real estate developers in the region.

Preliminary investigations and document verification during the raids revealed widespread non-compliance with GST laws applicable to the real estate sector, including ineligible availment of ITC and its non-reversal, violation of procurement conditions — such as sourcing at least 80% of inputs and input services, and 100% of cement, from registered suppliers — short payment of tax on construction services, and wrongful utilisation of ITC to discharge outward tax liabilities.

The simultaneous operations targeted seven major developers and firms operating across prominent zones in Kolhapur, namely M/s. Deshpande Infra; M/s. 24 Keywest Infra; M/s. Raysons Constructions; M/s. Ramsina Construction Pvt.Ltd.; M/s. The Ideal Construction (India) LLP; M/s. Shree Builders and Developers; and M/s. Highstreet Developers.

During the search operations, the mobilisation teams impounded key financial records, purchase registers, sales ledgers, and digital evidence from the respective business premises. Further scrutiny of these records, along with quantification of the total tax evasion and recovery, is currently under progress.

The CGST Kolhapur Commissionerate reiterates its commitment to ensuring a level playing field for compliant taxpayers. The department has cautioned that strict anti-evasion measures, intelligence-led enforcement, and rigorous audit action will continue against tax evaders in the region.

PIB Mumbai | Sriyanka Chatterjee/ Priti Malandkar

 

 

 

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