Gautam Buddh Nagar, March 19, 2026:
The State Tax Department has launched a major crackdown on bogus and non-existent firms in Gautam Buddh Nagar, leading to the registration of FIRs and the arrest of nine individuals linked to fraudulent tax operations, officials said on Thursday.
According to the Deputy Commissioner (Administration), State Tax, Noida, a reconnaissance-based verification of registered firms in the Noida zone revealed large-scale irregularities. During the inspection, 20 firms registered under state jurisdiction and 60 firms registered under central jurisdiction were found to be bogus or non-existent.
Officials said scrutiny of the registration documents submitted by these firms showed that they had obtained GST registration fraudulently by using forged documents with the intention of evading tax. Following the findings, the registrations of these firms were cancelled and further legal action was initiated.
The investigation further revealed that these bogus entities had passed on Input Tax Credit (ITC) worth ₹637 crore to a total of 1,027 firms. Of these recipient firms, 455 are registered in Uttar Pradesh, while 574 are located outside the state, indicating a wider network of tax fraud extending beyond Gautam Buddh Nagar.
The department said ITC worth ₹78.27 crore has already been blocked in connection with the bogus and non-existent firms. In addition, legal proceedings against these entities have led to the generation of a tax demand of ₹1,788.99 crore.
Officials also carried out chain analysis of the bogus firms to identify the actual beneficiaries behind the transactions. Information about these beneficiaries has been sent to their respective assessing officers for further action. In such linked cases, the department has so far generated an additional demand of ₹162.89 crore, according to officials.
The department said the action is part of the government’s zero-tolerance policy against tax evasion. As part of this enforcement drive, authorities are not only targeting fake firms but also identifying the masterminds operating behind them.
To ensure criminal action in all such cases, FIRs and written complaints have been submitted to police stations concerned. Acting on these complaints, police have so far arrested nine persons allegedly involved in running or facilitating the fake firm network.
Officials said the crackdown is aimed at protecting government revenue, preventing fraudulent ITC claims, and dismantling organized tax evasion networks operating through paper firms. The department is continuing its investigation and is expected to widen the scope of action as more beneficiaries and operators are identified.
The State Tax Department reiterated that strict action will continue against firms involved in fraudulent registration, fake invoicing, and tax evasion, and warned that those found participating in such activities will face both financial and criminal consequences.
