Police in Uttar Pradesh’s Azamgarh district have arrested three people in an alleged GST evasion racket involving bogus firms, fabricated invoices and forged e-way bills that reportedly caused a revenue loss exceeding ₹4.08 crore. Investigators claim the accused misused identity documents to register fictitious businesses and facilitate unlawful Input Tax Credit claims.
Personal Credentials Allegedly Used to Create Firms
The arrested accused have been identified as Anand Gupta of Jaichandpur village in Barabanki district, Vinay Gupta of the Deviganj Chauraha area in Barabanki district, and Mohammad Kaif of Atariya village in Moradabad district.
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The alleged network was uncovered during the investigation of a case registered in 2025. Police said financial and digital evidence recovered during the inquiry pointed to an organised system for creating firms that conducted little or no genuine business.
Investigators allege that Aadhaar and PAN details, along with mobile OTPs belonging to different individuals, were collected and used to prepare forged rent agreements and other documents required for business registration.
Once registered, the firms were allegedly used to show fictitious purchases and sales. Fake GST invoices and e-way bills were then generated to create the appearance of legitimate commercial transactions.
Bogus Transactions Enabled Fraudulent ITC Claims
Police claim the fabricated documents were supplied to businesses seeking to claim Input Tax Credit benefits without carrying out genuine trade. This allegedly allowed the beneficiary firms to reduce their tax liabilities while causing losses to government revenue.
During questioning, Anand Gupta allegedly told investigators that a firm had been registered in his name in return for ₹5,000.
Vinay Gupta is accused of arranging Aadhaar details, PAN information and OTPs from individuals whose identities were used during registration. Investigators allege that he received approximately ₹8,000 for each set of credentials supplied.
Mohammad Kaif allegedly helped register the bogus firms and prepare fabricated GST invoices and forged e-way bills. Police claim he worked with associates to create false purchase and sale records that supported fraudulent ITC claims.
Wider Network and Beneficiaries Under Investigation
Input Tax Credit allows businesses to offset GST paid on purchases against the tax payable on sales. Authorities allege that the accused exploited this mechanism by introducing fictitious transactions and invoices into the system.
Investigators are examining bank accounts, digital records, financial transactions and business links associated with the accused. Police suspect that other people may have helped obtain credentials, register the firms or use the fabricated documents.
The inquiry is also focused on identifying businesses that may have benefited from the fraudulent credit claims. Officials expect the investigation to reveal further participants and beneficiaries connected to the alleged GST evasion network.
