State Tax Department flags bogus outward supplies, suspended suppliers and non-existent business premises; Kalyanpur police begin probe.
Kanpur – A case of ₹1.13 crore GST evasion has surfaced in Kanpur after the State Tax Department detected large-scale bogus transactions by a firm operating under the name ‘Sarvashri Meena Traders’. Following the department’s investigation, an FIR has been lodged against the firm’s owner Sarjan Meena at Kalyanpur police station on the complaint of Deputy Commissioner Santosh Kumar Singh.
Firm showed ₹6.28 crore outward supply despite no business activity on site
According to the complaint filed with the police, Meena Traders—registered on 28 May 2025—declared ₹6.28 crore in outward supplies for FY 2025–26.
However, when the State Tax team inspected the registered address, no commercial activity, business set-up or inventory was found. Local residents confirmed that no business had ever operated at the location, indicating that the firm existed only on paper.
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Based on its inflated outward supplies, the firm allegedly passed on ₹1.13 crore of IGST Input Tax Credit (ITC) to other entities.
Suppliers’ GST registration suspended or cancelled; bogus purchases detected
The inquiry further revealed that Meena Traders showed purchases from several suppliers whose GST registrations had already been suspended or cancelled. Through these fictitious suppliers, the firm claimed:
₹2.36 crore of inward supply, and
₹2.64 lakh of ITC,
despite the transactions being non-genuine.
Officials said the pattern clearly indicates fabricated billing, artificial ITC generation, and misuse of dormant or cancelled GST numbers to evade tax.
State Tax Department calls it deliberate fraud; police investigation underway
Deputy Commissioner stated that the firm generated fake purchase invoices, availed illegitimate ITC, and used it to offset its tax liability—causing substantial loss to government revenue.
Kalyanpur police have registered the case and initiated an investigation. Station In-charge Rajendra Kant Shukla said further action will be based on detailed financial scrutiny and verification of digital and banking records connected to Meena Traders.
