The Uttar Pradesh State Tax Department has busted a Rs 51.74 crore GST fraud in the state capital, Lucknow. Two traders have been accused of creating bogus firms to fraudulently claim input tax credits (ITC) on fake invoices, officials confirmed on Saturday.
According to the department, two separate FIRs have been lodged at Vibhuti Khand and Bijnor police stations following formal complaints from state tax officials earlier this week. The crackdown is part of the state's ongoing campaign against fake GST registrations and shell firms.
Fake Firm HK Impax Created Using Forged Documents
Assistant Commissioner (State Tax) Gaurav Kumar Rajpoot revealed that on June 13, 2024, trader Haseeb Khan obtained GST registration for a firm named HK Impax, allegedly using fabricated documents. The firm's address was shown on Ayodhya Road, supported by a falsified electricity bill as proof.
However, during verification, both the address and the bill turned out to be fake. When tax officers visited the site, no such business was found operating. Subsequent scrutiny revealed that Khan had issued bogus invoices and illegally claimed input tax credit worth approximately Rs 25 crore.
Following the discovery, an FIR was registered at Vibhuti Khand police station on November 3 under relevant provisions of the GST Act and the Indian Penal Code (IPC).
Second Case: Rs 26.74 Crore Fraud by Sun Enterprises
In another case, Deputy Commissioner Ashok Kumar Tripathi from State Tax Division-19 reported that trader Suvendu had registered a firm named Sun Enterprises on May 24, 2024, in the Bijnor area of Lucknow. Upon field inspection, officials discovered that the firm was non-existent at the registered address.
Further investigation through the GST portal revealed fraudulent transactions and fake ITC claims amounting to Rs 26.74 crore. A separate FIR has been filed at Bijnor police station, and efforts are underway to trace additional individuals or firms linked to the racket.
Documents Under Forensic Review, Probe Widens
Officials confirmed that all documents submitted during registration - including ID proofs, bills, and declarations - are under forensic and administrative review. The department suspects the involvement of more traders and intermediaries who may have facilitated the creation of these fake GST entities.
A senior tax official stated,
"The department has adopted a zero-tolerance policy towards tax evasion. Strict legal action will be taken against anyone involved in creating or operating bogus firms to claim fraudulent input credits."
Police, Tax Department Coordinate for Prosecution
Police authorities have begun collecting case files and documentary evidence from the State Tax Department to build a robust prosecution case. The investigations are being closely monitored by senior officials in Lucknow.
The cases mark one of the largest GST evasion crackdowns in recent months, reinforcing Uttar Pradesh's aggressive stance against financial fraud and fake billing networks.
Officials added that such coordinated enforcement between the State Tax Department and Police aims to safeguard the state's GST revenue and restore integrity in the taxation system.
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