Lucknow, Aug 23 (IANS) In a major breakthrough, the Lucknow Crime Branch has uncovered a network that created fake GST firms using forged documents to claim and pass on fraudulent Input Tax Credit (ITC), causing a loss of about Rs 27.25 lakh in government revenue.
According to official information, an investigation was conducted regarding M/s Ghanshyam Enterprises based on a complaint received on August 30, 2025. The firm had obtained a Goods and Services Tax Identification Number (GSTIN) to trade unwrought lead waste, parings, and plastic scrap.
During the investigation, irregularities came to light regarding the firm’s registration and business operations.
The accused would contact various companies and firms using a GST firm established on the basis of forged documents. Subsequently, they would derive financial gain by passing on fraudulent Input Tax Credit (ITC) to one another. In this manner, a network of fake Input Tax Credit was created through paper transactions, devoid of any actual business activity, to evade GST, thereby causing a loss of approximately Rs 27.30 lakh to the government exchequer.
Under the guidance of Additional Deputy Commissioner of Police (Crime) Kiran Yadav, the Crime Branch, in a joint operation with the Hasanganj police, took action after continuously tracing and gathering intelligence on the accused involved in the case and analysing the available technical and documentary evidence.
The joint investigation led to the arrest of four members of the gang, identified as Vaibhav Singh, Mohd Arsan, Vikas Kumar, and Mohd Saqib. Police said six mobile phones have been recovered from them.
ADCP (Crime) Kiran Yadav stated that necessary legal action is underway against the arrested accused under Case Crime No. 130/2025, registered at Police Station Hasanganj under Sections 319(2), 318(4), 338, 336(3), 340(2), and 61(2) of the BNS.
Simultaneously, the roles of other potential accomplices and associated firms, which caused revenue loss through fake GST firms and fraudulent ITC claims, are being investigated, officials said.
The Crime Branch is also actively working to identify other links in the fake GST network by analysing the documentary and digital evidence used in such economic offences.
–IANS
cg/dpb