Noida, March 20: The state tax department has launched a significant operation against fake firms in Gautam Buddh Nagar, revealing a large-scale tax evasion network.
According to the Deputy Commissioner (Administration) of the state tax department in Noida, a special investigation campaign uncovered numerous fraudulent companies that were operating solely on paper, causing substantial losses to government revenue.
Officials reported that during a thorough examination and physical verification of registered firms in the Gautam Buddh Nagar zone, 20 firms registered under state jurisdiction and 60 firms under central jurisdiction were found to be entirely bogus or non-existent. The investigation revealed that these firms fraudulently obtained GST registrations using fake documents with the intent to evade taxes.
The department has immediately canceled the registrations of all these firms and initiated further legal action. The investigation also uncovered that these fake firms passed on input tax credits (ITC) amounting to approximately ₹637 crores to around 1,027 other firms, with 455 registered in Uttar Pradesh and 574 in other states.
Given the seriousness of this scam, the department has blocked ITC worth ₹78.27 crores so far. Additionally, a total tax demand of ₹1,788.99 crores has been generated against these firms. Through chain analysis of the bogus firms, the real beneficiaries have been identified, and their respective tax assessment authorities have been notified. This process has also led to an additional demand of ₹162.89 crores.
The Deputy Commissioner stated that strict actions are being taken under the government’s ‘zero tolerance’ policy towards tax evasion cases. The masterminds behind these fake firms are being identified, and actions are being taken against them as well. FIRs have been filed at the relevant police stations in all cases. So far, nine individuals have been arrested, and officials indicate that the investigation will continue to identify and take stringent legal action against others linked to this network.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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