Aligarh firm owner is first from UP to land in GST net

Aligarhbased bogus firm’s owner is first to land in GST dragnet from UP

LUCKNOW : The Aligarh police on Tuesday made the first arrest under the GST law in Uttar Pradesh since the new tax regime came into existence in July last year. The arrest followed the commercial tax department lodging an FIR in a matter related to tax evasion by a bogus firm. The firm was bogus one and illegally claimed ₹6.42 cr input tax credit from department without making any transaction.

LUCKNOW: The Aligarh police on Tuesday made the first arrest under the GST law in Uttar Pradesh since the new tax regime came into existence in July last year.

The arrest followed the commercial tax department lodging an FIR in a matter related to tax evasion by a bogus firm.

Commercial tax commissioner Kamini Ratan Chauhan said here that on Tuesday, the Harduaganj police, in Aligarh, arrested Ankit Garg, the owner of the Tala Nagri-situated Shivani Steels.

The firm was a bogus one that illegally claimed Rs 6.42 crore input tax credit (ITC) from the department without making any

THE BOGUS FIRM ILLEGALLY CLAIMED ₹6.42 CRORE INPUT TAX CREDIT FROM THE DEPARTMENT WITHOUT MAKING ANY TRANSACTION.

transaction.

“This is the first arrest under the GST Act in the state and more arrests are expected to follow,” she said, adding that “the department has launched a state-wide crackdown on tax evaders and bogus companies that appear to have developed an inter-state network.”

Based on an intelligence input by the special task force set up by the commercial headquarters, a commercial tax team led by commissioner HB Rao Dixit and deputy commissioner RPS Kaunteya, raided Shivani Steels situated in Tala Nagri in Aligarh.

The team lodged an FIR against the firm under the GST Act’s provisions at the Harduaganj police.

Ordered by the commercial tax commissioner, the department’s newly set up ‘research cell’ has prepared a report on an interstate network comprising iron and steel firms and how they evade tax.

Based on this report, a commercial tax department’s team consisting of 100 officials conducted intensive checks of five firms in Aligarh, Mirzapur and Bulanshahar districts on October 25 and 26.

Iron and steel are among the commodities where the tax evasion is said to be highest in UP.

The squads detained 14 trucks carrying goods with suspect documents and also detained undeclared stock worth Rs 25 crore.

“The vehicles declared by these firms for transporting goods to distant states like Gujarat and Punjab were traced back to motorcycles, e-rickshaws, tempo etc,” Chauhan revealed.

She said as many as 250 bogus transactions had come to light so far.

“We have found conclusive evidence relating to five trading firms of UP and six those of other states operating as part of the inter-state network to evade tax,” she claimed.