GST Evasion Gang Busted: UP Police Crack Down on Fake Firms

Uttar Pradesh Police arrested five gang members involved in a GST evasion scam using fake firms, uncovering a Rs 7.03 crore loss. Authorities seized laptops, fake invoices, and an unregistered car. The investigation revealed forged documents and fake GST registrations, with further inquiries ongoing to trace the fraudulent money trail.

Uttar Pradesh Police have made significant headway in a major scam involving the Goods and Services Tax (GST), arresting five people believed to be part of an organized gang. Their operation allegedly focused on large-scale GST evasion through bogus firms.

The group's activities resulted in a reported revenue loss of approximately Rs 7.03 crore, according to Senior Superintendent of Police Brijesh Kumar Srivastava. Fake GST invoices and shell companies were used to illicitly generate and transfer input tax credit (ITC) without any actual goods transactions.

Earlier arrests had already been made in connection to these fraudulent activities, bringing the total number detained to eight. Investigations delved into questionable firms like M/s ML Builders and M/s Bharat Building Material, which fabricated invoices to inflate turnover and create bogus ITC, severely impacting the exchequer.

(With inputs from agencies.)