A trader from Devchara has been accused of evading Goods and Services Tax (GST) worth approximately ₹3.5 crore by creating a bogus firm. Following an investigation, the Special Investigation Branch of the Commercial Tax Department has filed a report at Bhamora police station. Police have registered a case against the accused and initiated further action.
According to official information, Deputy Commissioner A. Lallan Maurya of the State Tax Division-1 Special Investigation Branch received intelligence that the owner of M/s Vinod Trading Company, Vinod Gupta, had obtained GST registration using forged documents and was fraudulently claiming Input Tax Credit (ITC), thereby causing financial loss to the government.
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Firm Found Non-Existent During Inspection
Acting on the information, the departmental team inspected the registered business address on January 22, 2021. No business activity was found at the location, nor was any company signboard displayed.
During verification, the son of the warehouse owner—whose premises were shown as the firm’s business location—clarified that his father had not rented out the warehouse to Vinod Kumar Gupta. The signatures on the rent agreement were also found to be forged.
Local residents confirmed that no mentha oil or other trading activity was being conducted at the site. The investigation concluded that the firm existed only on paper.
Fake Purchase Records Used to Claim ITC
The report states that Vinod Trading Company showed purchases worth ₹1.64 crore from Shyam Traders through e-way bills and fraudulently claimed ITC amounting to approximately ₹19.74 lakh. Additionally, fake transactions were shown with multiple other firms to claim CGST and SGST credits.
Investigations further revealed that invoices were generated without actual supply of goods, enabling fraudulent ITC benefits. Through this method, the accused allegedly caused a total revenue loss of ₹3,48,27,514 to the government.
Action Following Government Directive
It has been reported that during a review meeting of the State Tax Department on June 5, 2025, strict action was ordered against shell and fake companies. This case was registered in compliance with those directives.
The FIR has been lodged by State Tax Officer Division-1, Sheshnath Rawat. Police have initiated proceedings against Vinod Gupta under relevant legal provisions.
Officials stated that detailed scrutiny of documents is underway, and if involvement of other firms is established, further legal action will follow.
Departmental sources emphasized that misuse of GST registration and fraudulent ITC claims through paper transactions constitute serious economic offenses. The investigation is ongoing, and further developments are expected soon.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
