The Uttar Pradesh Special Task Force (STF) has dismantled a large inter-state GST evasion network, arresting eight individuals accused of causing a revenue loss exceeding Rs 500 crore, officials said on Friday.
According to the STF, the syndicate operated through a web of fake companies, forged invoices and bogus e-way bills, enabling the illegal transfer of ITC without any actual movement of goods or services.
Fraud Spread Across Multiple States
Investigators revealed that the racket had a pan-India footprint, with shell firms registered across Tamil Nadu, Kerala, Telangana, Karnataka, Andhra Pradesh, Delhi, Jharkhand, Madhya Pradesh, Gujarat, Maharashtra, Bihar and Assam.
Within Uttar Pradesh, fraudulent firms were found operating in Meerut, Hapur, Ghaziabad, Noida, Kanpur, Lucknow, Varanasi and Agra. Officials highlighted that in Agra alone, a firm named Sharma Enterprises allegedly caused a GST loss of around Rs 137 crore.
How the GST Evasion Was Carried Out
STF officials said the accused created shell companies using forged identity and registration documents. These entities generated fake sales invoices and e-way bills without any underlying business activity.
The gang allegedly gained access to bank login credentials, OTPs and GST portal details of multiple firms. Using this access, they uploaded fraudulent documents on the GST portal to illegally pass on ITC benefits to genuine businesses, which purchased fake credit to reduce their tax liability.
Circular trading, layered transactions and cash dealings were reportedly used to create an appearance of legitimate operations.
Rs 500 Crore+ GST Evasion Detected
Preliminary analysis of bank accounts, GST filings and seized digital evidence points to tax evasion exceeding Rs 500 crore, officials said, adding that the figure could rise as the investigation progresses.
The arrests were made during questioning at the STF field unit office in Meerut, following leads generated from a case registered at Lohamandi police station in Agra in August 2024, where technical assistance was sought by local authorities.
Accused Identified
The arrested individuals have been identified as:
- Ramesh Patel, a native of Deoria, currently residing in Delhi
- Ankur Tiwari, from Gautam Buddh Nagar
- Swatantra Kumar Tiwari, from Ghaziabad
- Meerut residents Mohammad Wasim, Mohammad Sohail, Javed Malik, Ikramuddin and Dilshad Malik
Large Cache of Fake Documents Seized
During searches, the STF recovered extensive incriminating material, including:
- 90 forged rubber stamps of fake firms
- 54 cheque books, debit and credit cards from various banks
- Multiple PAN, Aadhaar and voter ID cards
- Fake transport company bill books
- Three laptops, 18 mobile phones and 25 files linked to bogus billing
- Four four-wheelers used by the syndicate
Officials said the group operated accounting hubs in Meerut and Ghaziabad, from where GST returns, fake invoicing and bank transactions were centrally managed. In several cases, legitimate business owners allegedly shared their GST credentials via messaging apps, enabling the generation of fraudulent invoices.
Further Action Underway
The arrested accused will be produced before the concerned court, while further legal proceedings and financial trail analysis are ongoing. Authorities said more arrests and recoveries are likely as the investigation expands across states.
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