Gautam Buddh Nagar’s tax sleuths have struck hard against a sophisticated GST fraud syndicate, arresting nine suspects and issuing massive tax demands exceeding ₹1,789 crore. The raid exposed 80 bogus firms that siphoned off hundreds of crores through sham transactions.
What started as a routine special investigation campaign snowballed into a revelation of organized tax theft. Physical recces and detailed audits confirmed that dozens of firms—20 state-registered and 60 centrally registered—existed only on paper, cheating the exchequer with fake GST enrollments.
These phantom companies funneled ₹637 crore in bogus input tax credits to over 1,000 legitimate businesses, contaminating the GST ecosystem. Uttar Pradesh firms received a chunk, but the fraud spanned multiple states, highlighting the interstate nature of the racket.
Responding decisively, officials revoked all registrations and froze ₹78.27 crore in credits. Tax notices worth ₹1,788.99 crore were slapped on the culprits, while beneficiary tracing added another ₹162.89 crore to the recovery tally.
‘Zero tolerance is our mantra,’ declared the Deputy Commissioner, detailing how chain analysis pinpointed true profiteers. Police complaints have been lodged, leading to the nine arrests. The net is widening, with promises of relentless pursuit against kingpins.
This operation not only plugs revenue leaks but sends a chilling message to tax evaders: the law is catching up. As probes continue, Gautam Buddh Nagar sets a precedent for aggressive enforcement in India’s battle against fiscal fraud.