According to officials, the two firms had been shown as operational since 2018 from residential addresses, raising immediate suspicion during a departmental review. Upon verification, investigators found that neither firm was conducting any genuine business activity and existed solely to manipulate GST filings.
One of the firms, registered under the name Komal Traders, was found to be operating under a GST number issued in the name of a woman identified as Shabana. Departmental records revealed that the firm declared a tax liability of ₹5.14 crore over a two-year period. However, instead of paying the tax, the firm allegedly used forged documents to claim fake input tax credit (ITC) and adjusted the entire liability.
Further scrutiny showed that Komal Traders reported a turnover of ₹7.35 crore and wrongfully availed ITC benefits amounting to ₹1.32 crore. Officials confirmed that the transactions were largely fictitious and designed to generate fraudulent tax credits without any real supply of goods or services.
The State Tax Department has initiated legal proceedings against both firms under applicable GST and taxation laws. Officials said the investigation is ongoing to identify other beneficiaries, possible accomplices, and the wider network behind the fraud.
Authorities emphasized that such cases pose a serious threat to the integrity of the tax system and assured that strict action will be taken against those involved. The crackdown, officials noted, is part of a broader drive to detect fake registrations, curb GST evasion, and safeguard public revenue.
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