LUCKNOW, Sept. 25 -- The Uttar Pradesh state tax department detected alleged circular trading and irregular input tax credit (ITC) claims by three firms engaged in advertising and display services, resulting in the firms immediately depositing Rs.2.48 crore, officials said on Friday.

Circular trading in GST means a group of traders/dealers issuing invoices to one another in a loop without corresponding genuine movement or supply of goods/services mainly to create artificial turnover or pass on input tax credit.

Additional commissioner, Grade-II (Special Investigation Branch), state tax, Lucknow Zone-I, Manoj Kumar Vishwakarma said the irregularities came to light during data analysis of tax collected at source (TCS) by government depart...