The officers of Central Goods & Service Tax (CGST) Commissionerate, Lucknow have busted a network of fake firmsregistered under GST who were passing ineligible input tax credit to recipient firms all over the country. As a part of the special Pan India drive to burst the syndicates operating across the country engaged in creation of fake firms to fraudulently avail GST benefits, CGST Lucknow under took an extensive operation during the months of May, June and July, 2023. Consequently, physical verifications were conducted at the addresses of 647 firms registered under the jurisdiction of CGST, Lucknow spanning the districts of Lucknow, Unnao, Hardoi, Shahjahanpur, Sitapur, Lakhimpur, Barabanki, Gonda, Balrampur, Bahraich and Shrawasti

During the said drive,131 firms were found to be non-existent who had taken GST registrations on fictitious names and using forged documents. While some firms had fraudulently taken GST registration using PAN of some other persons, some had forged rent agreements or electricity bills and mentioned addresses that were actually non-existent. These 131 fake.non-existing firms had shown supplies of goods/services worth Rs. 1355.74 Croresto about 1100 recipient firms spread all over the country, but these supplies had not actually taken place. Most of the recipient firms are located in the States of Uttar Pradesh, Haryana and Delhi. The major commodities shown in these fake supplies are waste &scrap, plywood and veneer. These bogus supplies of goods/services were shown in records to pass on the benefit of ineligible input tax credit to the tune of Rs.197.20 Crores to recipient firms with intention to evade payment of GST.

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