In a disturbing revelation of large-scale GST fraud, a daily-wage labourer from Lakhimpur Kheri district, Mohd Saeed, has received an income tax notice for Rs 9.3 crore turnover in the financial year 2020-21, despite having no involvement in any business activity.
Saeed, who resides with his wife in a rented hut in the Katra locality and earns his livelihood through odd jobs and part-time cooking at weddings, claims to have never submitted his PAN or Aadhaar for business registration. Investigations have unearthed that a bogus firm, Sun Trading, was fraudulently registered in his name at two separate locations-Mihipurwa Urra in Bahraich and Khairabad in Sitapur-without his knowledge.
This shocking case emerged just a day after the Uttar Pradesh Special Task Force (STF) arrested five individuals from Barmer, Rajasthan, for their alleged role in a GST evasion racket involving over 100 fictitious firms issuing fake e-way bills. Authorities believe Saeed may be one of many unsuspecting victims whose identities were misused in this growing trend of document-based fraud.
"I have been working for 20 years as a labourer. I've never even heard of this company. Someone used my documents, possibly when I submitted them for KYC at a local centre. Now, I'm being harassed for a fraud I didn't commit," Saeed told reporters, visibly distressed.
Saeed has already received two income tax notices linked to the fake firm's activities and has been knocking on the doors of various government offices seeking help to clear his name and hold the real perpetrators accountable.
This case has put a spotlight on the alarming misuse of identity documents and the urgent need for stricter KYC verification, Aadhaar safeguards, and GST registration protocols. Tax experts have warned that India's GST framework is vulnerable to such fraudulent practices unless immediate technological and regulatory interventions are made.
Authorities have now expanded the investigation to trace the kingpins behind Sun Trading and similar shell entities, as well as to identify any systemic lapses in the GST registration process that allowed such a scam to occur.
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