Fake Invoices Worth Rs 311 Crore Exposed in Ludhiana GST Crackdown

The GST department in Ludhiana discovered a big scam in the iron and steel business. Some companies were creating fake bills showing sales that never actually happened. Using these fake bills, they wrongly claimed GST benefits and tax credits. The total value of these fake transactions was about Rs 311 crore.

CGST officials carried out raids at several locations in Ludhiana and uncovered a major GST fraud. They found that an iron and steel manufacturer had used fake invoices to wrongly claim input tax credit, resulting in tax evasion of about Rs 47.50 crore.

The accused allegedly used fake GST credits to offset GST liabilities, causing a major loss to the government. After conducting searches, GST officials arrested a man and his son, who were believed to be running the fake invoicing operations. They were arrested under provisions of the Central GST Act, 2017, brought before a court, and then sent to jail under judicial custody.

The authorities are still investigating to uncover the full fake invoicing scheme, including who else was involved and who may have gained from or helped carry out the fraud.

The CGST Ludhiana Commissionerate says these crackdowns are meant to protect government revenue and keep things fair for honest taxpayers and warns that anyone caught committing tax fraud will face strict action.