The Uttar Pradesh State Tax Department has identified irregularities in three advertising and display service firms, leading to the recovery and deposit of ₹2.48 crore. The investigation focused on issues related to input tax credit (ITC) misuse and circular trading practices, according to officials involved in the case.
Uttar Pradesh Tax Department Uncovers Tax Credit Discrepancies
The Uttar Pradesh State Tax Department has recovered Rs 2.48 crore following inspections at three advertising and display service firms in Dalibagh, Jiamau, and Transport Nagar. This investigation was prompted by complaints regarding discrepancies in input tax credit (ITC) and allegations of circular trading.
The Special Investigation Branch (SIB) of Lucknow Zone-I initiated the probe after analyzing data related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) payments, as well as turnover and tax liabilities. Officials utilized the GST Prime Portal and analytical tools to assess TCS deductions made by government departments and local bodies against the firms’ declared turnovers and tax obligations.
During their investigation, officials reportedly found that the firms had claimed ITC that exceeded the amounts recorded in their electronic ITC ledgers.