Uttarakhand GST Dept Use Undercover Firms to Unearth Rs. 150 Crore Tax Evasion Racket

The Uttarakhand State Goods and Services Tax (GST) Department has uncovered a massive tax evasion racket exceeding Rs. 150 crore by deploying undercover tactics, including the creation of multiple dummy firms to infiltrate a suspect business network.

According to officials, the operation was months in the making. Investigators posed as genuine business entities and employees to gain the trust of a Sitarganj-based company engaged in the supply of transformers and related services. The covert strategy enabled authorities to closely monitor transactions and gather critical evidence of tax evasion.

Roshan Lal, Joint Commissioner of the Special Investigation Bureau (SIB), Kumaun Region, revealed that intelligence inputs had flagged irregularities in the company’s operations. “We received information that the firm was conducting transactions in the name of another company that had already been shut down, thereby suppressing its actual turnover to evade GST,” he said.

Acting on these inputs, the department conducted a search and seizure operation at the firm’s premises on March 18, 2026. The raid, which lasted nearly eight hours, resulted in the recovery of key documents related to sales, purchases, stock movement, and financial dealings.

Undercover Strategy Pays Off

In a notable investigative move, officials themselves entered the business ecosystem of the suspect firm. “We directed two of our officers to set up firms and establish business relations with the company. Others posed as employees and prospective buyers. Through these interactions, we confirmed that the firm was misusing defunct entities to conceal taxable transactions,” a senior अधिकारी involved in the probe stated.

The operation yielded immediate financial results. Officials confirmed that approximately ₹19.83 crore in GST dues was recovered on the spot through various modes, including cash and credit payments made late into the night. Authorities have also blocked the firm’s GST and associated ledgers pending further investigation.

Wider Network Suspected

Officials indicated that the probe is ongoing and may uncover a broader network of entities involved in similar fraudulent practices. Advanced tools, including artificial intelligence and forensic analysis, are being used to trace linkages and identify additional players in the racket.

Government Reaffirms Zero-Tolerance Policy

Sonika, Commissioner of Taxes, reiterated the state government’s firm stance against tax evasion. She emphasized that the crackdown aligns with the zero-tolerance policy advocated by Chief Minister Pushkar Singh Dhami.

Praising the investigation team, she noted that such proactive enforcement measures are expected to significantly strengthen GST compliance and boost revenue collection in the state.