A case of alleged GST fraud involving about ₹2.22 crore has surfaced in Uttar Pradesh’s Gonda district, where authorities found that a firm registered in Kolkata had allegedly issued fake bills without carrying out corresponding purchases or sales of goods. An FIR has been registered against the firm’s proprietor.
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How Did the GST Fraud Come to Light?
The case emerged following a complaint by the State Tax Department. An FIR was registered at Kotwali Dehat police station against a Kolkata-based trader.
The complaint concerns alleged GST evasion and other serious irregularities linked to a firm named “Sarveshri Bhagwant Enterprises”.
How Was the Firm Allegedly Used?
According to the State Tax Department, the firm was registered on the GST portal. Authorities allege that fake bills were issued through the entity and used to claim input tax credit.
The investigation found that business activity existed only on paper and no actual commercial activity was detected at the location during an on-site inspection.
Were Goods Actually Bought or Sold?
Investigators found no evidence of genuine purchases or sales of goods corresponding to the transactions under scrutiny.
Officials alleged that the business was shown through fake billing despite the absence of real commercial activity. This raised questions about the transactions recorded in the firm’s name.
How Much Turnover Was Reported?
The firm allegedly reported turnover of around ₹45.55 lakh in October 2025.
The reported turnover then rose sharply. By July 2026, turnover of around ₹11.94 crore was shown, according to the information available in the case.
How Much Input Tax Credit Was Claimed?
The department alleged that approximately ₹2.22 crore in input tax credit was claimed through the transactions linked to the firm.
The case centres on allegations that invoices were generated without genuine movement or trade of goods, allowing tax credit to be claimed on transactions that authorities say did not reflect actual business activity.
What Action Has Been Taken?
Following the State Tax Department’s complaint, police registered a case against the proprietor of the Kolkata-based firm at Kotwali Dehat police station.
The FIR concerns the alleged use of a firm for fake billing and GST irregularities involving input tax credit of about ₹2.22 crore.
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