Lucknow, Jun 7 (PTI) Uttar Pradesh Chief Minister Yogi Adityanath on Saturday directed officials to take action against shell companies to stop the attempts to misuse the facilities meant for genuine traders.

While conducting a high-level review of the State Tax Department, the CM directed officials to ensure transparency in tax collection and adopt a policy of technological efficiency and strict enforcement.

"Tax evasion is a national crime that negatively impacts development plans and welfare schemes," he said.

Stressing that the Goods and Services Tax (GST) is a consumer-based tax system, he noted that areas with higher population density are naturally expected to generate more tax revenue.

He instructed officials to develop special strategies for zones where tax collection is below average.

Adityanath directed that information on suspicious firms registered under Central GST (CGST) be shared with the Centre for cancellation of their registration.

For firms under State GST (SGST), he ordered in-depth departmental investigations, and if irregularities are found, their registration should be canceled and FIRs lodged.

The CM emphasised the need for on-site inspection of all newly registered firms, stating "fake companies should not be allowed to obstruct the rights of honest taxpayers”.

CM Adityanath said that such acts are an attempt to misuse the facilities meant for genuine traders, which is unforgivable.

“Such inspections are essential to ensure that genuine businesses can operate fairly and without interference," he said.

During the meeting, officials informed the CM that Rs 18,161.59 crore in GST and VAT had been collected during April and May against the financial year 2025-26 target of Rs 1,75,725 crore. PTI CDN NB NB

Action against shell companies: coordinated cancellation of registrations and investigations to protect genuine taxpayers. Directives require detection and enforcement against shell companies, with suspicious Central GST registrants reported to the Centre for cancellation of registration and State GST registrants subjected to departmental probes that may lead to cancellation and FIRs; on-site inspections of newly registered firms, technological efficiency, transparency in tax collection, and targeted strategies for low-collection zones were also mandated.