LUCKNOW, Nov. 3 -- A firm, which claims to be engaged in the business of buying and selling ferrous waste and scrap, has been accused of claiming fake input tax credit (ITC) worth Rs 2.49 crore, said senior state tax department officials on Sunday. The officials said the firm's GSTR-1 return for April 2025 showed outward supplies worth Rs 12.90 crore, while its GSTR-2A did not reflect any purchases. Despite this, the firm claimed ITC worth Rs 2.49 crore, which was allegedly used to pay GST liability. The state tax assistant commissioner Sanjay Singh has lodged an FIR against the firm Ms Shinde Enterprise and its operator Anil Tukram Shinde under Bhatiya Nyay Sanhita (BNS) section 318(4), which deals with the offense of cheating that leads to the delivery of property or the alteration of a valuable security, with a penalty of up to seven years imprisonment and a fine. This is a more severe punishment than other subsections of Section 318 and is the equivalent of the old Section 420 of the Indian Penal Code (IPC), but with an enhanced maximum sentence. As per the FIR, the complainant stated that the recent investigation by the State Tax Department, Uttar Pradesh, has led to the detection of a significant GST fraud allegedly committed by the firm. He further mentioned that the firm allegedly claimed ITC on purchases that were not actually made. He said a secret survey conducted by the State Tax Department on June 11, 2025, found that the firm was not operating from its declared business premises at Ground Floor, Shop No. 10, Kanpur Road, LDA Colony, Lucknow. The survey also revealed that the firm's mobile numbers were not functional. The department has also initiated further investigation into the matter. The alleged GST evasion by the firm is estimated to be Rs 2.49 crore, with Rs 1.24 crore being the share of the Uttar Pradesh government. The firm's actions have resulted in a significant loss of revenue to the government. The state tax department has urged businesses to comply with GST laws and regulations, warning of strict action against those found guilty of tax evasion....