Tax Dept. Exposes GST Evasion Worth 7 Crore in UP’s Bhadohi; Case Registered Against Businessman
The tax department has recently unearthed a massive GST (Goods and Services Tax) fraud worth 7 crores in UP’s Bhadohi. Recently, a case was registered against a businessman at the Koirauna police station regarding GST evasion of Rs. 7 crore. The department took action against the businessman when the Trade Tax Department discovered mismatches in its investigation.
Manoj Agarwal, the Deputy Commissioner of State Tax, asserted that a local trading company, M/s Pawan Traders, reportedly declared fraudulent sales of more than Rs 55 crore to traders in Bihar and Punjab without any actual transportation of goods. Following the investigation, the tax officials cancelled the firm’s GST registration.
According to the Deputy Commissioner, the firm obtained its GST registration on December 22, 2019, declaring its business address at Katra Bazaar in the Koirauna police station area. The complaint was registered against the owner of the company, named Pawan Kumar Mishra.
Between June and August 2020, the company reportedly declared sales worth Rs. 55.49 crore and claimed input tax credit (ITC) worth Rs. 7.29 crore. Agarwal said the investigation revealed that Pawan Traders claimed to sell goods to traders in Bihar and Punjab, but these traders had obtained GST registration using fake information. These sales existed only on paper; there were no invoices, transport records, or actual goods.
He further added that this scam was part of a planned tax evasion scheme. Chhotak Yadav, in charge of Koirauna police station, said that after a complaint from the state tax department on October 10, a case was filed against Pawan Mishra under sections 419, 420, 467, 468, and 471 of the Indian Penal Code.
