Amroha: The State Tax Department has uncovered two major cases of GST evasion in Amroha district, exposing a network of paper-based firms allegedly created solely for fraudulent billing and illegal Input Tax Credit (ITC) claims. The investigation reveals that a Moradabad-based trader allegedly operated a non-existent firm on paper and caused a revenue loss of over ₹5.73 crore, while another firm showed ₹14.75 crore worth of fictitious purchases without conducting a single genuine transaction. FIRs have been lodged in both matters and further inquiries are underway.
Case 1: “Gentex Impax” — Paper Firm Used to Facilitate ₹5.73 Crore GST Fraud
According to the complaint filed by Prithviraj, State Tax Officer (Sector-II, Amroha), a resident of Moradabad—Musavvir of Chamunda Wali Gali, Barwalan—registered a firm named “Gentex Impax” in Budhanpur under Didoli police station limits.
Documents submitted at the time of registration claimed that the firm was engaged in the manufacture of copper, aluminium, glass and supari products. A mobile number and email ID were also provided. However, during physical inspection, the department found:
- The firm had no physical existence at the declared address.
- All transactions were paper-based, involving the exchange of fake invoices.
- No transport or movement of goods took place at any stage.
- ITC was allegedly claimed and passed on without any genuine supply.
Department records show that between FY 2021 and FY 2024, Musavvir used the fake entity to pass on benefits to certain individuals through fictitious billing, causing a cumulative revenue loss of ₹5,73,82,046, including tax, interest and penalties.
The GST registration of Gentex Impax was cancelled on 9 February 2024.
Trader Untraceable; No Recovery Possible Through Bank Account
To recover dues, the department issued notices to the Central Bank of India branch in Moradabad, seeking attachment of the firm’s current account. However, the account had insufficient balance, making recovery impossible.
A subsequent on-ground inspection revealed that the registered premises was a dilapidated, locked structure, and locals reported no knowledge of any business activities or the owner. The mobile number listed on the GST portal was found to be switched off.
Following directions from senior officials, Didoli police registered a case under sections related to fraud, forgery and tax evasion. Circle Officer (City) Abhishek Yadav confirmed that the matter is under active investigation.
Case 2: Bogus Firm Shows Fictitious Purchases Worth ₹14.75 Crore, Zero Actual Transactions
The second case involves a scrap-trading firm that allegedly showed inflated, fraudulent purchase figures amounting to ₹14.75 crore, despite having no real purchase activity during the financial year.
The firm—M/s Shiv Trading Company—was registered under CGST jurisdiction on 21 June 2020 by Jeevanram Purkharam, a resident of Jaisalmer, Rajasthan. The principal place of business was declared as Gajraula Road, Hasanpur, Amroha, with two mobile numbers and an email ID.
The investigation revealed that:
- The declared business premises was non-existent.
- The firm reported ₹2.25 crore sales in FY 2020–21 and ₹12.50 crore sales in FY 2021–22.
- Purchases were allegedly shown from Maksud Sales Corporation and Prasad Enterprises, both of which reported zero purchases during the same period.
Officials suspect that the entity was part of a larger fake billing and bogus ITC chain, designed to artificially inflate turnover and illegally pass on ITC.
15 More Suspicious Firms on the Radar
According to the State Tax Department, at least 15 additional paper-based firms in Amroha district are under investigation for similar malpractices. Several of these firms are suspected of generating fraudulent invoices to help other traders evade tax, causing substantial loss to the state exchequer.
Deputy Commissioner (State Tax) Mahesh Chandra stated:
“Intensive scrutiny of all suspected entities is in progress. One FIR has already been filed at Didoli police station, and a complaint has been submitted to Hasanpur police in the second case. Many of these firms exist only on paper and are responsible for considerable revenue leakage.”
