Tax evasion a national crime, take stern action against fake firms: CM | Lucknow News
Lucknow: Chief Minister Yogi Adityanath on Saturday directed officials to act against shell companies and fake firms that are deriving undue benefits against the rules.He said that such acts were an attempt to misuse the facilities meant for genuine traders and the matter should be dealt with seriously.The CM, while conducting a high-level review of the state tax department, directed officials to ensure transparency in tax collection and adopt a policy of technological efficiency and strict enforcement. Calling the act of such companies ‘unforgivable’, Yogi said, “Tax evasion is a national crime that negatively impacts development plans and welfare schemes.”Stressing that GST is a consumer-based tax system, he noted that areas with higher population density were naturally expected to generate increased tax revenues for the state coffers. He instructed officials to develop special strategies for zones where tax collection is below average.Yogi directed that information on suspicious firms registered under central GST (CGST) be shared with the higher authorities in Delhi for cancellation of their registration. He ordered in-depth departmental investigations for firms under state GST (SGST). Upon encountering anomalies, officials would be given a free hand to register a criminal case and prosecute such people accordingly.Insisting on the on-site inspection at the time of registration of new firms, Yogi said, “Fake companies should not be allowed to obstruct the rights of honest taxpayers. Such inspections are essential to ensure that genuine businesses can operate fairly and without interference.”During the meeting, officials informed the CM that nearly Rs 18,162 crore was collected through GST and VAT tax components in April and May of the 2025-26 financial year. The target for the year assigned to the department is Rs 1.76 lakh crore.Appreciating the progress, the CM directed officials to achieve the target through regular monitoring. The CM praised the achievements of 14 zones, including Lucknow, Ayodhya, Bareilly, Agra, Ghaziabad, Gautam Budh Nagar, Meerut, Jhansi, and Saharanpur divisions, for achieving increased targets.In contrast, officials in Varanasi, Prayagraj, Kanpur, Etawah, Aligarh, and Moradabad were reprimanded for collecting less than 50% of the stipulated target. He said that a detailed report should be prepared covering the role of officials deputed in the low-performing regions and sent to the govt.He emphasized that revenue was not just a number, but the foundation of development, and every officer should carry out their duties with responsibility and sensitivity.“In areas with weak tax collection, additional, joint, and deputy commissioners should personally engage with traders to build trust, cooperation, and a sense of compliance among the taxpayer community,” said Yogi.
