A major Goods and Services Tax (GST) evasion racket has come to light in Bareilly after state tax authorities detected a bogus firm that allegedly caused a revenue loss of ₹72.84 lakh to the government by generating fake invoices and fraudulently passing on input tax credit (ITC). Acting on the findings of a departmental inquiry, the State Tax Department has lodged an FIR at the Baradari police station, triggering a wider probe into an organised network of fake firms operating in the district.
The complaint was filed by Assistant Commissioner (State Tax), Zone Four, Aviral Mudgal, who stated that the firm, operating under the name Salim Traders, secured GST registration by submitting forged documents and false address details.
Forged Documents Used to Obtain GST Registration
According to officials, Salim Traders showed its place of business in the Kalibadi area under the Baradari police station limits. However, during physical verification, tax officers found that no such firm existed at the registered address. The business was registered in the name of Nagma, a resident of Sajwan Nagar in Ghaziabad, whose identity documents were allegedly misused to create the fake entity.
The investigation revealed that in April 2021, the firm issued fake invoices showing fictitious supplies worth ₹2.79 crore, passing on ITC of ₹50.25 lakh without any actual movement of goods. In May 2021, the firm again uploaded forged invoices reflecting bogus supplies of ₹1.25 crore, generating unlawful ITC worth ₹22.58 lakh.
In total, the alleged tax evasion amounted to ₹72.84 lakh, prompting authorities to initiate criminal proceedings.
Organised GST Fraud Network Under Scanner
Tax officials believe the case is part of a much larger GST fraud network operating across Bareilly district. Investigators say fraudsters have been floating dozens of fake firms in the names of labourers, economically weak individuals, and illiterate residents, often without their knowledge.
These local entities are allegedly linked to handlers based in Delhi and Gujarat, who coordinate the creation of fake inward and outward invoices purely on paper. The objective, officials say, is to pass on ineligible ITC and fraudulently claim GST refunds without any real business activity.
Similar Cases Reveal Repeat Patterns
Earlier investigations at Baradari police station indicate a consistent modus operandi. In one case, a firm named Thakur Enterprises, registered from a false address in Nawada Shekhan, claimed supplies worth ₹2,441 lakh and passed ITC of ₹439 lakh, despite having no physical stock or business premises. Even tenancy documents submitted for GST registration were later found to be forged.
In another instance, Murti Enterprises allegedly used fake rent agreements and fabricated electricity bills to obtain GST registration and is accused of evading nearly ₹149 lakh in tax.
Officials say these cases point to a systematic abuse of the GST framework by creating shell firms that exist only on paper.
Accused Absconds as Police Tighten Net
Police sources said more than 60 bogus firms may be linked to the same syndicate. With raids and document verification intensifying, several suspected members of the network have gone underground.
SP City Manush Parikh confirmed that the crime branch is examining financial records, GST returns, bank accounts, and identity documents. “All evidence collected by the tax department is being analysed. Based on the findings, arrests will be made and the charge sheet will reflect the full scope of the fraud,” he said.
Authorities have indicated that further FIRs are likely as the probe widens.
Source from: https://the420.in/bareilly-gst-fraud-bogus-firm-network-exposed-7284-lakh-evasion/
