The Uttar Pradesh state tax department has initiated a comprehensive review of all firms registered across the state to detect tax evasion and bogus business activities, confirmed senior officials of the department.
The officials said the authorities will examine the annual turnover of registered firms and assess whether the correct amount of tax is being deposited. They said the investigation will also focus on identifying multiple firms registered using the same address and mobile number.
They further said that, any firm found violating rules or operating on the basis of forged documents will face strict action, including registration cancellation and FIRs against those involved. The department will also evaluate whether concerned officers fulfilled their responsibilities properly, they added.
A senior state tax official said a report from the additional commissioner in Moradabad revealed massive irregularities in 122 firms collectively showing a turnover of ₹1,811 crore. “Based on this report, several firm registrations have now been cancelled. Nearby states have also been alerted through official communication, urging them to convey any intelligence about such bogus firms to Uttar Pradesh for coordinated action,” he added.
He further said the department has also forwarded a letter to the central GST office, requesting that any suspicious findings during their investigations be immediately shared with the UP authorities.
Enhanced vigilance after ₹341 crore GST evasion case
Following the Moradabad report, a detailed inspection was conducted at a registered address in Lucknow. While the investigation confirmed the presence of the company’s premises, the owner could not be traced. Three other companies with similar names were also found to have no physical existence.
Officials say the crackdown aims to eliminate shell companies and protect the state’s revenue system from large-scale tax fraud. They said heightened scrutiny follows a recently uncovered GST evasion case involving ₹341 crore, which alerted the commissioner’s office.
