Kanpur. Kanpur Police have registered four cases in connection with alleged large-scale Goods and Services Tax (GST) evasion through bogus firms. Based on complaints filed by state tax officials, cases were registered at Naubasta and Barra police stations against four firm operators, who have been accused of causing GST losses of around ₹53 crore. Departmental scrutiny has allegedly revealed irregularities in business transactions and tax-related records maintained in the names of the firms.
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Action Based on State Tax Department Complaints
At Barra police station, a case has been registered on the complaint of a State Tax Department assistant commissioner against the garment firm operated by Shailesh Goswami, a resident of Jarauli Phase-I. The department has alleged that GST worth around ₹19.14 crore was evaded through the firm.
The police registered the case based on records and findings provided by the State Tax Department. Investigators are now examining the firm’s actual business activities and the transactions allegedly carried out in its name.
₹9.93 Crore GST Evasion Alleged Against Chandan Services
At Naubasta police station, a case has been registered against Shubhrant Chandan, operator of Chandan Services, following a complaint by a state tax officer. He has been accused of GST evasion amounting to around ₹9.93 crore.
According to departmental officials, the alleged tax evasion came to light during scrutiny of documents and GST-related records linked to the firm. Police are examining the firm’s business transactions, documents and other records as part of the investigation.
Indian Trading Company Faces ₹16.83 Crore Evasion Allegation
A separate case has been registered against Dushyant Mishra, owner of Indian Trading Company in Naubasta Purani Basti. The case was registered on a complaint by a State Tax Department deputy commissioner, who alleged that GST worth around ₹16.83 crore was evaded through the firm.
The department examined tax records and business-related documents associated with the company. Police are now investigating the alleged method of tax evasion and whether any other individuals or firms were involved.
₹4.84 Crore GST Evasion Alleged Against Arjun Traders
In another case, a complaint filed by a State Tax Department deputy commissioner led to the registration of a case against Arjun Savita and Amrish Tiwari, operators of Arjun Traders. The two have been accused of GST evasion amounting to around ₹4.84 crore.
Police said all four cases were registered on the basis of complaints submitted by state tax officials. Investigators are expected to examine firm registrations, business records, financial transactions and GST filings. Further action will depend on the findings of the investigation.
Separate Case Over Alleged Fake ITC Worth ₹76.35 Lakh
Meanwhile, a separate case involving alleged fraudulent Input Tax Credit (ITC) worth ₹76.35 lakh has also emerged in Kanpur. Balaji Enterprises, registered under the Central GST system, has been accused of showing purchases worth crores of rupees on paper and obtaining allegedly fraudulent ITC of ₹76.35 lakh.
The department filed a complaint against the firm’s owner, Kartik, at Kakadeo police station, following which a case was registered. According to the GST assistant commissioner, scrutiny of records available on the GST portal revealed details related to the firm’s registration and transactions.
GST Registration Granted on March 19, 2026
According to the departmental investigation, Balaji Enterprises received GST registration on March 19, 2026, for the purchase and sale of goods. The permanent address mentioned in the registration application was in the Nagar Nigam Basti Colony in Swaroop Nagar. The bank details submitted with the registration referred to the Bank of India branch in Geeta Nagar.
The department is now examining the records and the alleged purchase and sale transactions. Investigators will determine whether the purchases shown in the records actually took place and which firms were involved in the transactions reflected in the documents.
Investigation Into Possible Tax Evasion Network
The cases have increased scrutiny of bogus firms and allegedly fraudulent transactions in Kanpur. Investigating agencies are examining whether the accused firms were engaged in genuine business activities or were allegedly being used mainly to show transactions on paper and manipulate GST liabilities and ITC claims.
As the investigation progresses, police and tax officials may examine bank accounts, GST records, purchase and sales documents and other records linked to the firms. Further legal action will depend on the evidence gathered during the investigation and the outcome of the proceedings.
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About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
