GST Fraud: Ludhiana Businessman Arrested in Rs 9 Crore Scam

A businessman from Ludhiana has been arrested in a GST fraud case involving Rs 9 crore. This was informed by the Finance and Taxation Minister Harpal Singh Cheema on Thursday.

The minister further shared that the arrest was followed by an operation carried out by the State Intelligence and Preventive Unit, Ludhiana. The person arrested is being identified as Rohit Gupta, who is the owner of M/s MAA STEEL, Ludhiana.

It was found that the accused company used to issue bogus invoices for the HR/CR coils and strips without any actual supply of goods. Cheema said that the fake invoices were used to pass on the Input Tax Credit (ITC) of more than Rs 9 crore to several beneficiaries.

Additionally, the investigating team of the tax department also found that there were mismatches between the physical stock available at the location and the firm’s official book records.

To unearth the entire fraudulent network, the finance minister said that several manufacturers of cycle parts and spare parts were also being investigated by the department. These manufacturers are suspected of being involved in this scam. He said that these firms are under investigation for improperly claiming export refunds or benefits through an inverted duty structure.

Apart from this, he also shared that an excise and taxation inspector was also removed from his job for being absent from work for a long period without permission. He was removed under the Punjab Civil Services (Punishment and Appeal) Rules, 1970.