Harpal Singh Cheema Exposes Major GST Evasion Racket in Punjab, Rs 9.50 Crore Recovered:

Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Tuesday said the State Taxation Department has detected a major GST evasion case involving around Rs 22 crore. The department has already recovered Rs 9.50 crore in cash as SGST from a firm based in Mandi Gobindgarh.

The action was taken against M/s Jagat Metals Pvt. Ltd. after tax officials found irregularities during a detailed analysis of the company’s transactions. According to the department, the firm had claimed Input Tax Credit (ITC) of around Rs 22.53 crore through transactions involving suppliers whose GST registrations had been cancelled by the department.

The investigation also found suspicious transactions further along the supply chain. Some intermediate suppliers had allegedly claimed large amounts of ITC from cancelled dealers. This raised doubts about whether the transactions were genuine and whether the goods had actually been supplied.

Acting on intelligence inputs, tax officials conducted an inspection at the company’s premises in Mandi Gobindgarh on September 7, 2026. The search continued until late at night. Following the inspection, the company deposited Rs 9.50 crore as SGST in cash, Cheema said.

The minister said the recovery showed that Punjab’s intelligence-based tax enforcement system is helping the government detect tax fraud. He said the department is using data analysis and technology to identify suspicious billing networks and fake or fraudulent ITC claims.

The investigation is still underway to recover the remaining amount. Officials are checking invoices, e-way bills, vehicle details, weighment slips, bank transactions and other records to verify the actual movement of goods and trace the complete money trail.

Cheema said the total tax evasion in the case is estimated at around Rs 22 crore and expressed confidence that the remaining dues would also be recovered during the ongoing proceedings.

He said the Bhagwant Mann government has a zero-tolerance policy towards tax evasion and fraudulent ITC claims. Those involved in tax fraud will face strict action under the law, he warned. At the same time, the government will continue to support honest and tax-compliant businesses.