On the instructions of State Tax Commissioner Sonika, the Chief Inspector of the headquarters carried out raids on four firms dealing in electrical goods, including LED lights and lithium batteries, in Haridwar.
Preliminary analysis of GST returns and e-way bill data revealed that these companies were allegedly passing on crores in Input Tax Credit (ITC) through mutual sales and purchases, despite minimal actual business operations. The electricity department had previously disconnected power to the firms due to outstanding dues, yet the companies continued generating e-way bills worth crores.
Investigators found no entries for the movement of goods in the firms’ gate registers. Further investigation revealed that a related Sitarganj-based firm, which had been closed for the past two years, was also showing transactions worth crores in collaboration with the Haridwar firms. E-way bill data indicated no evidence of actual vehicle movement or toll plaza crossings, confirming that no real supply of goods had occurred and only circular trading and fake billing took place.
The probe also uncovered significant discrepancies between the sales and purchases reported and the actual stock available. The scheme was primarily concentrated in the trade of lithium batteries and integrated circuits. A prima facie case of GST evasion exceeding Rs 8 crore has been identified.
The raid continued late into the night, with teams seizing devices and records from the firms for further examination. The operation involved 10 teams comprising 30 officers.
The Tax Commissioner has directed strict action against firms misusing ITC benefits through fake billing and circular trading. Details of such firms are also being forwarded to other agencies for further investigation.
