Kanpur. A case involving alleged fraudulent GST registration and subsequent transactions worth crores of rupees has come to light in Kanpur, with the State Tax Department alleging that a firm used forged documents to obtain registration and then declared large-scale business transactions to pass on input tax credit (ITC). An analysis of GST records showed that M/s Shivang Traders declared outward supplies worth ₹14 crore 74 lakh 45 thousand from June 2026 until the date of investigation during financial year 2026-27. During the same period, the firm allegedly passed on bogus ITC worth ₹2 crore 65 lakh 40 thousand. A case has been registered against firm proprietor Shivang Vishwakarma at Panki police station following a complaint by the State Tax Department.
The complaint submitted to police by Pankaj Kumar, Deputy Commissioner (Special Discipline), Area-B, Kanpur, contains details of the firm’s registration and business activities. According to the department, M/s Shivang Traders obtained GST registration on June 25, 2026, for an address at 147/697, Ratanpur Colony, Panki Road, Panki, Kanpur. Shivang Vishwakarma, son of Ramji Vishwakarma and a resident of 10/273 Khalasi Line, Kanpur Road, Kanpur, was recorded as the proprietor of the firm.
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Physical verification on September 16
A State Tax Department team conducted physical verification of the address declared by the firm on September 16. During the inspection, officials allegedly found that forged documents had been used for obtaining the GST registration. The department subsequently began examining whether the business declared through the registration was genuine and whether the transactions reported through the GST system reflected actual supplies.
The investigation team also analysed data available on the GST common portal relating to the firm. Officials examined the outward supplies declared after registration, ITC-related details and other transactions. The departmental scrutiny indicated that the firm had reported substantial business activity through the GST system within a short period after obtaining registration.
₹14.74 crore outward supply declared
According to the analysis of GST portal records, M/s Shivang Traders declared outward supplies worth ₹14 crore 74 lakh 45 thousand between June 2026 and the date of the investigation. The department has alleged that during the same period, the firm passed on bogus ITC worth ₹2 crore 65 lakh 40 thousand.
Passing on ITC means making tax credit available to another registered business on the basis of purchases or transactions. In this case, the State Tax Department has questioned the genuineness of the transactions underlying the credit and is examining whether the reported purchases and supplies actually took place.
The department has also raised the possibility of loss of government revenue through alleged fictitious transactions and ineligible ITC. Investigators are examining the documents used for obtaining registration and their connection with the business transactions recorded on the GST portal. Relevant records and documents related to the reported transactions have been included in the investigation.
Business transactions after registration under scanner
Police will now examine the documents on the basis of which the GST registration was obtained, whether business activity was actually being conducted at the declared address and which firms or traders were involved in the ₹14.74 crore outward supplies shown on the GST portal. Investigators will also establish the basis on which the alleged ₹2.65 crore ITC was passed on to other businesses.
The investigation is also expected to focus on the role of other firms involved in the transactions and whether the reported purchases and sales were backed by actual movement of goods or supply of services, or whether only paper transactions were recorded. Bank accounts, invoices, e-way bills, GST returns and other relevant records may be examined as part of the probe.
A case has been registered against Shivang Vishwakarma on the complaint submitted by the State Tax Department, and police are investigating the matter. Officials said the registration, business operations, financial transactions and ITC passed on by the firm would be examined in detail. Further action will be taken on the basis of evidence gathered during the investigation.
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.
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