Kanpur: A raid by the State GST Department’s Special Investigation Branch (SIB) at Madhuram Sweets in Kalyanpur has revealed alleged tax evasion of Rs 10 crore, with investigators pointing to major discrepancies linked to sugar purchases, Amar Ujala reported.
The action was carried out on Wednesday by an eight-member team led by Deputy Commissioner Vinay Kumar Gautam after data analysis flagged irregularities in the firm’s records.
Officials said the investigation found that the establishment had shown large-scale purchases of sugar over multiple financial years, but the volume of sweets produced and the turnover declared did not match the quantity of sugar procured. The mismatch raised suspicion that sales were being under-reported to reduce tax liability.
During the search, officers seized daily tax invoice summaries for February 2026 and November 2025, along with sales registers, cash and credit account books, and bill books. Stock records were found to be incomplete.
According to the department, data available on the official portal indicated that the firm had declared unusually low cash tax liability in the financial years 2023-24, 2024-25 and 2025-26. Confidential inputs had also suggested that bills were not issued for all sales.
Further scrutiny revealed gaps between the sugar purchased for sweet-making and the business figures shown in records. Officials said that by understating sales compared to raw material consumption, the firm allegedly evaded tax.
Additional Commissioner (Grade II), SIB, Kumar Anand said the estimated tax evasion of Rs 10 crore was assessed after a detailed review of digital records. Surveillance was conducted before the raid was carried out.
The search has concluded, and further investigation is underway, officials said.
