Ballia (UP), February 21 The "owner" of a purportedly non-existent firm was booked here for causing a revenue loss of Rs 6.59 crore by claiming input tax credit, police said on Saturday.
The FIR was filed against Akhilesh Sharma, owner of Sharma Enterprises, which was reportedly located in Sisotar village here, based on a complaint filed by State Tax Officer Sikandar Verma at Sikandarpur police station on Friday.
Police said Sharma had obtained a Goods and Services Tax Identification Number on January 18, 2025, purportedly for purchase and sale activities. However, Assistant Commissioner of State Tax Rahul Kumar cancelled the firm's registration on February 28, 2025.
In his findings, the assistant commissioner stated that the firm had declared inward supplies and claimed bogus input tax credit merely through exchange of documents without any actual supply of goods from non-existent and fake firms.
Input tax credit allows businesses to claim credit for GST paid on business purchases to reduce the GST they owe on their sales, preventing "tax on tax".
A review of records available on the GST portal revealed that the fraudulently availed input tax credit was used to discharge outward tax liability, resulting in a revenue loss of Rs 6,59,38,960.41 during the financial year 2024-25, officials said.
State Tax Officer Sunil Kumar Patel, during a field inspection, found that the firm did not exist at the declared place of business. At the site, Sharma's father, Suresh Sharma, told officials that no such firm was operating from the address. He also spoke to his son over the phone, who allegedly denied having obtained any registration.
Officials alleged that the non-existent firm was used to fraudulently pass on input tax credit benefits.
The FIR was registered following directions issued by Deputy Commissioner of State Tax Anil Kumar on January 14.
Sikandarpur Station House Officer Mool Chandra Chaurasia said police have begun an investigation into the matter.