GST Crackdown Tightens in Uttar Pradesh Amid Rising Evasion and Corruption Cases
The Uttar Pradesh tax department has ramped up its crackdown on GST evasion, launching a series of high-impact enforcement actions that have sent ripples through the trading community.
In one of the most significant busts, officials from the Directorate General of GST Intelligence (DGGI) uncovered a ₹50 crore tax fraud in Kanpur. The scheme allegedly involved shell companies and concealed transactions. Authorities have since sealed the associated factory and seized critical documents and digital evidence for further investigation.
In a separate joint operation, the state’s Special Task Force (STF) and sales tax department exposed a ₹13 crore GST scam involving circular trading and fake invoicing between two subsidiaries of a company. The probe extended across Lucknow, Pratapgarh, Noida, and Kheri, highlighting the networked nature of GST fraud.
The state tax apparatus, operating under the administrative oversight of the Additional Chief Secretary and led by the Commissioner, has a wide footprint: 20 zones, 45 ranges, and 436 sector offices across Uttar Pradesh. To tighten compliance among large businesses, 21 corporate circles have been set up, in addition to a dedicated Oil Corporate circle based in Lucknow.
Corruption within the system has also come under sharp focus. In a recent case, Deputy Commissioner Dhanendra Kumar Pandey was arrested for allegedly soliciting a ₹2 lakh bribe to expedite a GST refund of ₹20 lakh. In the wake of such incidents, the state has begun replacing select tax officials with IAS officers in key roles to enforce tighter oversight and rebuild trust in the system.
Citizens and traders are encouraged to report evasion or raise concerns by contacting the Office of the Commissioner, State Tax, Uttar Pradesh, based in Vibhuti Khand, Gomti Nagar, Lucknow. Contact numbers and email addresses have been made available for inquiries and complaints.
A wave of anxiety has gripped sections of the trading community in Uttar Pradesh as the State Tax Department intensifies its crackdown on GST evasion under the leadership of strict and result-oriented IAS officers.
Determined to restore transparency and accountability, the department—crucial to the state’s revenue system—is swiftly replacing internal officers with IAS officials to root out entrenched corruption and inefficiencies. This strategic overhaul aims to hold accountable those traders who have long exploited systemic loopholes, causing substantial losses to the state exchequer.
