Lucknow: In Uttar Pradesh, the trader dialogue campaign conducted by the State Tax Department has started showing positive results with an increase in revenue collection. Officials stated that a total revenue of ₹9,731 crore was collected in February, which is about ₹352 crore higher than the same period last year. During the current financial year, total revenue collection has reached ₹103,779 crore, which is ₹402 crore more than the corresponding period of the previous year.
The State Tax Department has further strengthened the compliance system under the GST 2.0 model by improving the e-invoice, e-way bill, and online return filing mechanisms. Authorities said the expansion of the digital system has helped curb tax evasion while encouraging voluntary tax payments by taxpayers. Trader dialogue programs were organised across all 75 districts of the state to discuss GST reforms, return filing procedures, and online tax compliance.
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According to departmental reports, an artificial intelligence-based scrutiny system has also been introduced. Through this system, data related to transactions worth more than ₹48,000 crore involving around 1.59 lakh taxpayers was analysed. The investigation helped uncover a large network of bogus firms allegedly involved in attempting to claim fraudulent input tax credit (ITC).
The enforcement units of the State Tax Department conducted a large-scale operation against bogus firms and exposed ITC irregularities worth around ₹2,166 crore. A total of 345 FIRs have been registered in this case, involving joint action by central and state agencies. During the investigation campaign, 86 accused persons were arrested. Additionally, ITC worth ₹137 crore has been blocked.
Large Network of Bogus Firms Uncovered
Officials said that due to the active efforts of enforcement and special investigation teams, more than ₹1,642 crore has already been deposited into the government treasury. Combined recovery under GST and VAT reached ₹3,117 crore, which is significantly higher than the previous year. Of this, ₹2,406 crore was recovered under GST and ₹711 crore under VAT.
Investigations also revealed that some fake companies were operating only on paper and attempting tax fraud through fake billing practices. Department officials stated that such networks are being identified and strict legal action is being taken against economic offenders. Special monitoring teams have been instructed to continuously track suspicious transactions.
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Tax experts believe that digital surveillance and trader dialogue initiatives can strengthen the tax collection system. Authorities have clearly stated that no person or firm involved in tax evasion will be spared and the scope of investigation will be expanded further.
Department officials said that the campaign against bogus firms will continue in the future as well. The State Tax Department aims to promote tax compliance and minimise tax evasion incidents. Traders have been urged to follow legitimate business practices and immediately report any suspicious transactions to the department.
