Amroha GST Scam: Paper Firms Used to Evade Crores in Tax

State Tax Department Uncovers Major GST Fraud Using Fake Paper Firms in Amroha

The State Tax Department has detected two large-scale GST evasion rackets in Amroha, revealing paper-based firms allegedly created to generate fake invoices and claim unlawful Input Tax Credit (ITC). One case involves a Moradabad trader accused of causing a revenue loss of more than ₹5.73 crore, while another fraudulent entity reportedly showed fictitious purchases worth ₹14.75 crore without conducting any real business. FIRs have been lodged in both matters, and investigations are ongoing.

Gentex Impax Linked to ₹5.73 Crore in Fraudulent Transactions

According to officials, a trader from Moradabad, Musavvir of Chamunda Wali Gali, registered a firm named Gentex Impax in Budhanpur under Didoli police station.
Despite claims of manufacturing copper, aluminium, glass, and supari products, a physical inspection confirmed that the firm never existed at the declared location.
Authorities found that all transactions were confined to paper, with no movement of goods or legitimate supply. The firm allegedly issued fake invoices between FY 2021 and FY 2024, enabling others to claim illegal ITC amounting to ₹5.73 crore.
The GST registration was cancelled on February 9, 2024.

Trader Missing; Bank Account Has No Recoverable Funds

Recovery notices were sent to the Central Bank of India branch in Moradabad to attach the firm’s account, but it carried negligible balance.
An on-site visit revealed a locked, dilapidated structure with no sign of ongoing business activity. Locals reported no knowledge of the owner.
Didoli police have registered an FIR under charges of fraud, forgery, and tax evasion. The mobile numbers listed on the GST portal remain switched off, making the accused untraceable.

Shiv Trading Company Shows ₹14.75 Crore of Bogus Purchases

In the second case, officials exposed a scrap firm, M/s Shiv Trading Company, registered on June 21, 2020 under CGST jurisdiction. The firm purportedly operated from Gajraula Road, Hasanpur, but investigators found no physical establishment at the location.
Despite reporting sales of ₹2.25 crore in FY 2020–21 and ₹12.5 crore in FY 2021–22, the firm allegedly recorded fictitious purchases worth ₹14.75 crore from entities that themselves showed zero purchase activity.
Authorities suspect it was part of a larger fake billing chain to illegally pass on ITC and artificially inflate turnover.

Fifteen More Suspicious Firms Under Investigation

The State Tax Department reported that at least 15 more firms across Amroha are under scrutiny for similar fraudulent practices. Many of these firms allegedly exist only on paper and may have contributed to significant losses to the state’s revenue.
Officials stated that intensified inspection drives are underway, with FIRs already registered in two confirmed cases and complaints filed for further action.

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