Kanpur, Feb. 27 -- The State GST Department has uncovered an alleged tax evasion of nearly Rs 10 crore by a sweet shop in Kanpur with the help of an Artificial Intelligence (AI) tool, officials confirmed on Friday.

According to Additional Commissioner Kumar Anand, the department used an AI-based analytical tool (Co-Pilot) to examine the firm's purchase and sales records over the past three financial years.

The analysis revealed that the establishment had purchased sugar in large quantities but reported significantly lower production and sales of sweets made from it. The tax paid did not correspond with the quantity of raw materials procured.

Following the findings, a joint inspection was conducted on Wednesday by officials, including Dep...