Fake GST Firm in Lucknow Caught Misusing Rs 2.11 Crore ITC

The Uttar Pradesh State Tax Department has uncovered a fake firm allegedly created using forged documents in Lucknow. The bogus entity, registered under the name M/s Kumar Service, reportedly availed fraudulent Input Tax Credit (ITC) worth Rs 2.11 crore, causing significant revenue loss to the government.

According to officials, the State Tax Zone-14 team detected the scam during an inspection, revealing that the firm existed only on paper. When tax officers conducted a raid at its registered address in Hind Nagar, Ashiana Road, Lucknow, no business establishment was found at the site. Residents in the vicinity also denied any knowledge of such a firm operating in the area.

Fake Documents and Suspicious Bank Links

The firm, owned by Sachin Kumar, obtained a GST registration (09KKLPK4003EIZ6) on April 18, 2025, using forged electricity bills and other fraudulent documents. Surprisingly, while the business was registered in Lucknow, its bank account was linked to the State Bank of India branch at The Mall, Mussoorie (Dehradun) raising further red flags.

An investigation into the firm's transactions revealed that M/s Kumar Service claimed inward supplies of Rs 11.73 crore from a supplier named Balaji Traders in June 2025, based on which it availed ITC exceeding Rs 2.11 crore. However, scrutiny of Balaji Traders' GST returns showed no corresponding outward supplies, confirming that the transactions were fabricated.

FIR Filed; Investigation Underway

Following these findings, State Tax Assistant Commissioner Sanjay Singh lodged an FIR at Sarojini Nagar police station against the firm's owner, Sachin Kumar. The police have registered a case and initiated a detailed investigation into the GST fraud.

Officials suspect the creation of a network of shell firms to generate fake invoices and siphon off Input Tax Credit illegally. The case adds to the growing list of GST-related frauds being unearthed across Uttar Pradesh, where authorities are intensifying efforts to curb tax evasion through stricter data analytics and field inspections.