The State Tax Department’s Special Investigation Branch has uncovered a major GST evasion operation involving ₹16.29 crore in the Moradabad zone. The fraud was allegedly orchestrated by three Ghaziabad-based firms that sourced goods from bogus companies in Delhi to evade taxes on iron scrap consignments en route to Uttarakhand. Enforcement teams intercepted three vehicles carrying iron scrap during inspections in Moradabad, and examination of transit documents established that the consignments were dispatched by the Ghaziabad entities.
Bogus Delhi Purchases and Substantial Outward Supplies
Scrutiny of the business accounts revealed that the three Ghaziabad firms had recorded significant outward supplies. The first firm declared supplies worth ₹43.88 crore, the second reported ₹35.23 crore, and the third accounted for ₹11.43 crore. Together, the outward supplies totalled ₹90.54 crore, resulting in detected tax evasion amounting to ₹16.29 crore. Upon verifying the source of the inward supplies, investigators discovered that the firms had claimed purchases from Delhi-based dealers whose GST registrations had already been cancelled or suspended.
Registration Cancellation and Recovery Action Underway
Following confirmation of their involvement in tax evasion, the department moved swiftly to penalise the errant entities. Authorities notified Central and State GST formations in Meerut to initiate formal proceedings for the cancellation of registrations of all three Ghaziabad firms. Concurrently, recovery proceedings have been initiated in Moradabad to realise the evaded tax along with applicable financial penalties from the defaulting traders. The ongoing drive focuses on verifying transactional trails, bill authenticity, and physical movement of goods to prevent further leakages.
Over 50 Delhi Entities Linked to Broader Network
The latest crackdown has prompted authorities to widen their inquiry, with initial findings pointing to the suspected involvement of more than 50 Delhi-based entities in related fraudulent activities. Moradabad previously served as the origin of a major nationwide investigation when enforcement teams intercepted two scrap vehicles last year. In that case, details traced to just two mobile numbers helped unearth 122 fake firms created across India, involving an estimated tax evasion of ₹50,000 crore. The state government subsequently constituted a Special Investigation Team to investigate systemic GST rackets across the state.
