The Special Investigation Branch (SIB) of the Uttar Pradesh State Tax Department has detected GST evasion worth ₹4.25 crore near the Banaras Locomotive Works (BLW). The SIB has taken action against a railway contractor and a tent house.
To uncover the evasion, the SIB continued raids for four days and disclosed the findings late at night. The investigation team raided the area near BLW on the night of 18 September. The operation continued until the night of 22 September. The team has not yet released the names of the contractor or the tent house.
Tax paid by concealing manpower supply
The SIB investigation has revealed that the railway contractor’s firm undertakes civil construction work and supplies manpower to DLW through the government e-marketplace. In the return filed for the financial year 2025-26, the firm concealed the manpower supply.
The firm did not file its return for 2026-27, even though it was paid more than ₹5.50 crore between April and August 2026. The tax payable on this amount is more than ₹1 crore, which has not yet been deposited.
₹4.25 crore evasion
According to SIB officials, the firm obtained input tax worth ₹36 lakh through fake bills. The investigation revealed tax evasion of around ₹4.25 crore. During the action, the contractor also deposited ₹46 lakh and said the remaining amount would be paid soon.
Tent house firm also committed fraud
According to GST officials, the investigation found irregularities in the documents of the catering and tent house company operating on the same premises. The firm’s GST registration was cancelled in March 2026. It had not filed any returns since July 2025.
Even so, it was carrying out business on a large scale. The firm had conducted business worth ₹2 crore to ₹2.5 crore from 2022-23 onwards. This is illegal, which is why action is being taken.
