GST Fake Billing: GST Penalty of Rs.50.19 Crore on 12 Firms

The Punjab GST Department has adjudicated 12 firms and imposed a penalty of Rs.50.19 crore against them after arresting four people in January this year in an alleged fake billing case.

The department has also initiated recovery proceedings against these firms under Section 122 of the GST Act. According to department officials, because the punishment for fraud is covered by Section 132 of the GST Act, these will be dealt with separately in court.

The companies facing penalty include Dashmesh Trading for Rs.13.14 crore, PB Interior Decor for Rs.7.44 crore, PK Trading Rs.3.45 crore, Guru Har Rai Trading for Rs.5.24 crore, Gagan Trading for Rs.6.37 crore, North Vogue for Rs.2.23 crore, Shiv Shakti Enterprises Rs.3.20 crore, Brij Trading Company Rs.3.54 crore, Sri Balaji Trading Company Rs.1.69 crore, Krish Enterprises for Rs.1.71 crore, Pankaj Scrap Company Rs.1.35 crore, Sri Radhey Krishan Enterprises for Rs.0.83 crore.

According to the officials, the owners of the companies generated fake bills but did not supply any goods, causing losses to the state exchequer.

“The penalty imposed on them is equal to the tax amount. The penalty will be recovered in cash rather than through ITC,” they stated.

“So far, we have penalised only 12 firms. All companies whose bills were generated in their names would be penalised in the next round. The chain reaction would continue, and the last company in the billing cycle would also face punishment,” said the officials.

The officials stated that a Lal Bazaar gold jeweller was also penalised in the case because most of the 12 firms facing penalties made transactions into his bank account.

On the orders of Additional Commissioner Jeevan Jot Kaur, division in charge Shaleen Ahluwalia, and ACST of Jalandhar-2 Rajmandeep Kaur, the action was launched.