Harpal Singh Cheema Announces New Fraud Detection Unit in Patiala to Tackle High-Value GST Violations

Finance Minister of Punjab Harpal Singh Cheema recently announced a state-level special fraud detection unit will soon be set up in Patiala to uncover and investigate high-value Goods and Services Tax violations.

The main objective to initiate this move is to flag and examine GST frauds with a main focus on eliminating circular trading operations, identifying benami transactions, and terminating the fake invoice practices.

He added that the Special fraud Detection Unit (SFDU) will take strict actions, such as cancellation of doubtful GST Identification Numbers (GSTIN), restricting wrongful Input Tax Credit claims, and suggesting charges against offenders.

He also said SFDU is permitted to take support of advanced technologies such as artificial intelligence (AI), data analytics and also centralised back-end operations to enhance its investigation. The unit will conduct data mining and recognition across the state to flag suspicious tax returns, transaction networks, and goods movement.

He stated, SFDU is permitted to make a team consisting of experts like:

• Tax officers
• IT professionals
• Chartered accountant and
• Legal officer

This team will be equipped with real-time access to critical data, including e-way bill tracking, GSTN information, toll records, and radio frequency identification trail analytics to take precise action against tax evasion.

The minister said the SFDU will play an important role in safeguarding the state’s revenue and encourage a culture of compliance by taking these measures to detect and prevent tax evasion, which will result in growth and stability of the state’s economy.