Sambhal (UP), May 22 (PTI) Sambhal police and GST authorities have jointly uncovered a Goods and Services Tax evasion racket and arrested two persons here, officials said on Thursday.

The accused allegedly created bogus firms to transport bricks from kilns in Sambhal to places in Uttarakhand using fake invoices, a senior official said.

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Superintendent of Police (SP), Sambhal, Krishna Kumar Bishnoi, said the accused created fake firms within the Sambhal Kotwali area to carry out systematic tax evasion. The gang used over 2,000 trucks to supply bricks to Kashipur and other parts of Uttarakhand over the past few years.

"These individuals would load bricks worth Rs 1.25 to Rs 1.5 lakh per truck from kilns and generate fraudulent invoices of less than Rs 50,000 to avoid paying GST," Bishnoi explained.

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"They evaded tax not only on production but also on transportation and delivery at the destination, effectively committing GST fraud at three levels," he said.

According to police, the mastermind behind the operation is Kapil Singhal and his associate Vikas Sharma acted as a key middleman. The arrested accused -- Danish and Zeeshan -- were actively involved in executing the fraudulent billing and brick supply operations.

"This gang has been operating for the past three to four years. They have created multiple fake firms under different names to continue the evasion undetected," Bishnoi said.

Danish and Zeeshan are being sent to judicial custody. Further investigation is underway to track down the remaining members of the racket, police said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)