Yogi govt uses AI technology to identify over 2,500 tax evaders among traders in UP, initiates action

Lucknow (Uttar Pradesh) [India], December 12 (ANI): The Yogi Adityanath government in Uttar Pradesh is using Artificial Intelligence (AI) technology to crack down on tax evaders among traders in the state.
The investigating agencies identified a total of 2,558 defaulters using AI technology.
According to an official statement, one of the defaulters, having a turnover of Rs 25 crore, has not deposited the tax in cash even once.
"One of the defaulters caught is Haji Textiles, located in Pilkhua of Hapur district, which makes bed sheets and has an actual turnover of Rs 25 crore, but has not deposited the tax in cash even once. The firm used input credit from bills of value less than Rs 50,000 to adjust the liability of outward tax in ITC itself to conceal the liability of its cash tax," the statement said.
The statement said that the department also took input regarding the firm from the local level and on conducting Reiki, it was found that only one main business place of the firm is declared and three other godowns/factories are running from unannounced places.
"The goods are kept by the firm at three undisclosed places with the ulterior motive of concealing its turnover and tax evasion," the statement said.
"The Special Disciplinary Branch of the State Tax Department searched these places. The investigating team also checked the GSTR-2A of the firm through Boweb portal and found that ITC was being taken by the firm by showing purchases from firms which were not actually doing any business," it added.
The statement further said that an undue ITC of Rs 59.30 lakh was availed by the firm by showing bogus purchases from non-existent firms.
"The investigation was done on December 7. The trader accepted his mistake and on the preliminary assessment itself, the amount was deposited by the firm accepting the liability of Rs 87.16 lakh," it said.
Another firm was caught for alleged tax evasion.
"Another firm caught for tax evasion is Sarvshree Indian Auto Wheels, a company engaged in manufacturing and servicing of heavy vehicles in GIDA, Gorakhpur. When the State Tax Department analysed the data on the basis of the inputs received from the BIFA report about the concerned trader, some discrepancy was suspected," the statement said.
"The investigation took place on December 10-11. On the basis of data analysis, it came to light that the tax liability accepted in GSTR-3B for the financial years 2020-2021 and 2021-2022 is Rs 85.32 lakh less as compared to GSTR-1 and the GSTR filed by the trader for the year 2019-2020. A total excess ITC of Rs 32.77 lakh was claimed in Form-9C, but the amount was not deposited. Also, stock transfer of Rs 5.40 lakh of parts at undisclosed business locations to districts other than declared business locations were shown," it added.
Chief Minister Yogi Adityanath has given clear instructions to the State Tax Department to ensure that no innocent businessmen were harassed and action was taken against only those against whom there is solid evidence.
"CM Yogi has directed officials to collect solid information and do reiki before proceeding with the raid as theft of revenue is a national loss," the statement said. (ANI)