Kanpur: A fake GST input tax credit (ITC) racket was exposed after the State Tax Department got an FIR registered against Umesh Kumar, operator of Sarvashri Kumar Enterprises, at Chakeri police station on Tuesday.The department alleged that the firm availed bogus ITC of Rs 1.15 crore by showing fake purchases and sales without carrying out actual business activities and passed it on to other firms, causing a loss to govt revenue.State Tax Department deputy commissioner Santosh Kumar got the FIR registered. According to the FIR, scrutiny of records available on the GST portal revealed that Sarvashri Kumar Enterprises received GST registration on April 9, 2025.The firm declared an outward supply of Rs 6.43 crore in the financial years 2025-26 and 2026-27, but serious irregularities were found in documents related to purchases and ITC.The department alleged that the firm claimed ITC on the basis of fake invoices from non-existent and suspicious firms and then passed this bogus ITC on to other taxpayers. During the investigation, it also came to light that the GST registration of one of the firms from which purchases were shown had been suspended, while suspicious transactions were also reflected through other firms.According to the documents, the firm availed bogus ITC totalling Rs 1,15,87,404 and passed it on to various companies. On July 4, a State Tax Department team carried out verification at the firm’s declared business address in KR Puram onSanigwan Road in Kanpur and found that no firm was operating there.The building owner said he did not know the firm or its operator and added that no business of any kind was being run from the location. The mobile number recorded in the registration was found switched off.On the basis of the preliminary investigation, the department treated the matter as a case of planned tax evasion and a fake ITC racket and recommended legal action under relevant sections of the Bharatiya Nyaya Sanhita.Station house officer Ajay Prakash Mishra said the police and the State Tax Department were jointly investigating the case.
