State Tax Department Files FIR in ₹1.15 Crore Fake GST ITC Case

The State Tax Department has initiated enforcement action in an alleged case involving fraudulent availment and transfer of Goods and Services Tax (GST) Input Tax Credit (ITC). An FIR has been registered at Chakeri Police Station, Kanpur, against the operator of Sarvashri Kumar Enterprises following findings from a departmental investigation.

According to the complaint filed by the department, the firm is alleged to have availed fake GST ITC amounting to approximately ₹1.15 crore by reporting fictitious purchase and sale transactions without undertaking genuine business activities. The investigation further indicates that the ineligible tax credit was subsequently passed on to other registered taxpayers, resulting in a loss of government revenue.

Departmental scrutiny of records available on the GST portal revealed that Sarvashri Kumar Enterprises obtained GST registration on 9 April 2025. The firm reported outward taxable supplies of approximately ₹6.43 crore during the financial years 2025–26 and 2026–27.

During verification of purchase records and ITC claims, tax authorities identified significant discrepancies. The department has alleged that the firm claimed input tax credit using invoices issued by non-existent and suspicious entities. The investigation also found that the GST registration of one of the supplier firms had already been suspended, while transactions involving certain other entities exhibited suspicious patterns requiring further examination.

The case forms part of ongoing enforcement measures aimed at detecting fraudulent GST credit claims, preventing the circulation of fake invoices, and safeguarding government revenue. Further investigation is being carried out in accordance with the applicable provisions of the GST law and related legal procedures. CA Sansaar