Lucknow: Crime branch has busted a GST evasion racket, uncovering a network of fake firms and fraudulent registrations used to siphon off input tax credit (ITC).The probe has so far identified four bogus companies, 107 suspicious GST registrations and financial transactions worth nearly ₹2.5 crore, police said. Key accused Buddhi Prakash Awasthi (35), a native of Sitapur currently residing in Faizullaganj, was arrested on June 19. Investigators said he played a central role in setting up shell entities and operating them using forged documents.The case stems from a complaint filed by assistant commissioner (state tax) Abhimanyu Pathak in Aug 2025 regarding Altamas Traders, which allegedly secured GST registration using fake rent agreements and claimed fraudulent ITC. An FIR was lodged at Itaunja police station under cheating and forgery charges.During the probe, police traced 107 GST-linked connections, indicating a wider syndicate. Buddha Enterprises, Supreme Enterprises, Kumar Traders and Altamas Traders were found involved, while another firm, Sunlight Enterprises, is under scrutiny. Police said Awasthi rented shops locally to obtain GST registrations and generate fake invoices.ADCP (Crime) Kiran Yadav said, “This case reflects a recurring pattern where fraudsters exploit unsuspecting individuals and loopholes in GST registration to create fake firms and claim fraudulent ITC.”
