Durg, Chhattisgarh: A gutkha businessman in Chhattisgarh’s Durg district has reportedly been served with a massive ₹317 crore tax and penalty demand by the state Goods and Services Tax (GST) department.
The order against businessman Gurumukh Jumnani reportedly directs him to deposit the amount within 90 days. The department has also warned that failure to pay the assessed dues could lead to the attachment of identified properties.
According to the details available in the case, 12 properties belonging to the businessman have been identified for possible recovery proceedings.
The action follows an investigation that began after the state GST department conducted searches at gutkha manufacturing and packaging facilities in Durg district in July 2025.
GST Department Conducted Searches in July 2025
According to the available information, GST officials searched facilities at Joratarai and Ganiyari in Durg district in July 2025.
During the investigation, officials reportedly found gutkha being packaged under the brand name Sitar at the facilities and supplied to various parts of Chhattisgarh.
The packaging operation reportedly continued for long hours, from around 7 am to 10 pm, with workers allegedly brought from Chhindwara.
The investigation was later extended to another facility reportedly connected with the businessman’s family.
Officials also examined the Komal Food factory in Rajnandgaon, which was reportedly associated with businessman Sagar Jumnani, the businessman’s son.
₹317 Crore Demand Includes Tax and Penalty
Following the investigation, the state GST department reportedly issued an order imposing a combined demand of approximately ₹317 crore in tax and penalty.
The amount represents a significant financial liability and follows months of investigation into alleged tax irregularities connected with the gutkha business.
The businessman has reportedly been given 90 days to deposit the amount.
If the dues remain unpaid within the stipulated period, the department may initiate recovery proceedings under the applicable tax laws.
Investigation Examined Gutkha Supply Network
The July 2025 searches were reportedly conducted to examine the manufacturing, packaging and distribution network associated with the gutkha business.
Investigators examined facilities where gutkha was allegedly packaged before being distributed across different parts of the state.
A GST investigation can involve scrutiny of raw materials, finished products, labour arrangements, financial transactions and supply records when authorities suspect that tax liabilities have not been properly reported or paid.
The investigation’s expansion to the Rajnandgaon facility linked to Sagar Jumnani suggests that officials were also examining other locations and business entities connected with the operation.
12 Properties Identified for Possible Recovery
The ₹317 crore demand puts considerable financial pressure on the businessman.
According to the available details, the GST department has identified 12 properties reportedly belonging to him for possible recovery action.
If the assessed amount remains unpaid, authorities could take steps to attach or otherwise proceed against eligible properties in accordance with the applicable recovery provisions.
However, the final recovery process would depend on the legal status of the demand and any appeal or other remedies available to the taxpayer.
Businessman Can Challenge the Tax Demand
The case is significant because of the size of the demand and the scale of the alleged business operation.
A ₹317 crore tax-and-penalty order represents a major enforcement action involving a gutkha business in Chhattisgarh and highlights the GST department’s focus on tax compliance.
At the same time, the issuance of a tax demand does not by itself amount to a final judicial finding of criminal wrongdoing. The taxpayer may have legal remedies under the GST framework to challenge the assessment or demand if he disputes the department’s findings.
The case is now expected to remain under scrutiny as the payment deadline approaches and the businessman considers whether to comply with the demand or pursue available legal remedies.
