Rs 7-crore GST fraud unearthed in UP's Bhadohi; trader booked, firm's registration cancelled

Bhadohi (UP), Oct 17 (PTI) Authorities here have uncovered a major case of Goods and Services Tax (GST) fraud, allegedly causing a revenue loss to the tune of Rs 7 crore to the exchequer, officials said on Friday.

A local trading firm, M/s Pawan Traders, allegedly declared fake sales worth over Rs 55 crore to traders in Bihar and Punjab without supplying any goods or arranging their transportation, they said.

Following an investigation, officials said the registration of the firm has been cancelled.

Deputy Commissioner (State Tax) Manoj Agrawal filed a complaint against the firm's owner, Pawan Kumar Mishra.

According to Agrawal, Mishra had obtained the firm’s GST registration on December 22, 2019, using a business address at Katra Bazaar, under the Koirauna police station area.

The firm reportedly declared total sales of Rs 55.49 crore between June and August 2020 and passed on Input Tax Credit (ITC) amounting to Rs 7.29 crore, he said.

"The probe revealed that Pawan Traders had shown supplies to traders in Bihar and Punjab who had obtained GST registration through fraudulent means or wilful misstatements. These transactions existed only on paper. No invoices, transport records, or real goods were found," Agrawal said, adding that the scam was part of an "organised tax evasion and criminal conspiracy".

Koirauna police station in-charge Chhotak Yadav said based on the complaint received from the State Tax Department on October 10, a case has been registered against Mishra under IPC Sections 419, 420, 467, 468, and 471, and further investigation is underway. PTI COR KIS PRK PRK