GST Fraud of 2.65 Crore Exposed via Fake Firm in Kanpur

A significant case of tax evasion has surfaced in the Panki Ratanpur residential area of Kanpur. The Special Investigation Branch, Range B, of the State Tax Department identified a firm that was being operated entirely through fraudulent means. This entity was used to cause substantial losses to the state revenue.

According to officials, the fake firm illegally claimed over 2.65 crore rupees in Input Tax Credit (ITC). This amount was siphoned off from the government treasury through deceptive practices. The investigation revealed that the firm had no real business operations and was merely a shell entity created to manipulate tax records.

Following the exposure of this fraud, the department has adopted a strict stance. A formal complaint has been filed at the local police station to initiate legal proceedings against the operator of the firm. The tax department team is currently investigating whether other individuals were involved in this scheme.

This incident highlights the vigilance of the department in curbing irregularities within the GST system. The Special Investigation Branch is continuously monitoring suspicious firms that attempt to evade taxes through fake invoicing.

Further arrests or interrogations are expected in the coming days as the investigation progresses. The department has clarified that strict actions will continue against those attempting to evade taxes in the future.

There is significant local discussion regarding this incident, as the fraud was being operated from a residential neighborhood. The department's action has caused concern among those who might be involved in similar illicit activities.

Currently, the police are actively investigating the matter given its severity. Based on the complaint filed by the department, the legal process is underway to ensure the recovery of the government funds.