The State GST department has uncovered four shell firms that allegedly evaded nearly ₹27 crore in tax by using fake addresses and forged documents. Separate FIRs have been lodged at Kalyanpur police station based on departmental complaints, and a detailed investigation is underway.
Officials said verification of the registered business addresses revealed that no commercial activity existed at the locations. The address near Govindnagar Ramlila Ground, where “Sarvashri Mahakal Traders” was shown to be operating, turned out to be fictitious. The house owner at the site denied any knowledge of the firm or the person named in the registration. The firm is accused of evading about ₹35.73 lakh in GST.
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According to the department, “Apex Enterprises” had obtained GST registration using a fake address in the Panki Bypass area. Field inspection found no business activity at the site. The firm was allegedly operated by Gurpreet Singh, a resident of Bundi, Rajasthan. In the financial year 2024–25, it reported paper transactions of ₹49.16 crore but failed to deposit ₹11.45 crore in tax. In 2025–26, up to May, it showed sales of ₹18.05 crore and evaded approximately ₹4.13 crore in GST.
In another case, “Kisan Enterprises” secured GST registration in August 2024 using forged documents linked to a fake address. The firm, allegedly run by Jyoti from Haryana, reported sales of ₹1.95 crore in 2024–25 but did not pay around ₹35 lakh in tax. In 2025–26, up to May, it showed turnover of ₹18.94 crore and evaded about ₹3.40 crore.
A third firm, “Waris Traders”, was created by Mohammad Wasi of Moradabad, who showed business operations in Kanpur involving the purchase and sale of plastic resin. Investigations revealed that the transactions existed only on paper, enabling the firm to fraudulently claim around ₹7.24 crore in input tax credit across the financial years 2024–25 and 2025–26.
Officials said these firms generated forged invoices and fictitious transactions to reduce tax liability and claim illegal input tax credit. The department has initiated proceedings to cancel the GST registrations and is examining the financial trail of bank accounts and digital records.
Police noted that such shell firms not only cause significant loss to government revenue but also distort fair competition for legitimate businesses. The probe is now focusing on identifying beneficiaries, facilitators and any wider network involved in the fraud.
More names are likely to emerge as the investigation progresses. GST authorities indicated that surveillance on suspicious registrations will be intensified and strict action will be taken against those using fake entities to evade tax.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
