The Uttar Pradesh State Tax Department has initiated a comprehensive review of all firms registered across the state, senior officials confirmed. The large-scale verification drive aims to identify shell firms, fraudulent registrations, and discrepancies in tax payments.
Officials stated that the department will scrutinize the annual turnover of registered firms and assess whether the correct amount of tax has been deposited. Special attention will be given to firms registered using the same address, email ID or mobile number, as such patterns often indicate fake or non-existent businesses created to generate fraudulent tax credits.
Action Against Bogus Registrations
According to a senior tax official, the probe was triggered after the Additional Commissioner in Moradabad reported serious irregularities in 122 firms collectively showing a turnover of Rs 1,811 crore. Based on the findings, several firm registrations have already been cancelled and FIRs have been filed against those involved in creating or operating fake entities.
"Nearby states have also been alerted through official channels, urging them to share intelligence about such bogus firms for coordinated inter-state action," the official added.
The department has further requested the Central GST office to share any suspicious findings or intelligence that may surface during their investigations to ensure a joint crackdown on fraudulent activities.
Enhanced Vigilance After Rs 341 Crore GST Evasion Case
The latest drive comes in the wake of a recently uncovered Rs 341 crore GST evasion case, which exposed the scale of fake billing networks operating across Uttar Pradesh. Following the Moradabad report, state tax authorities conducted a field inspection at a registered address in Lucknow, where the company's premises existed but the owner was untraceable. Investigations also revealed three other firms with similar names and no physical existence.
Officials stated that such fraudulent firms manipulate input tax credits (ITC) and disrupt genuine trade operations. The ongoing verification is part of the department's plan to strengthen the GST registration system and protect state revenue from shell companies and fake invoicing networks.
Accountability and Coordination
The State Tax Department also confirmed that it will assess the role of officers responsible for registration and monitoring to ensure accountability. Any lapse or negligence in supervision could result in disciplinary action.
"The goal is not only to eliminate fake firms but also to ensure that officials perform their duties responsibly," a senior official emphasized. "This operation is about building a cleaner, more transparent tax ecosystem."
Conclusion
With the investigation expanding to all registered firms, the Uttar Pradesh government is sending a strong message that tax evasion and bogus business registrations will not be tolerated. The coordinated effort between state and central GST authorities aims to plug revenue leakages and restore integrity in the state's taxation system.
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