Major GST Fraud Exposed in Punjab as Investigation Reveals 62 Linked Firms and Suspected Fake Billing Network:

Punjab Finance Minister Harpal Singh Cheema on Wednesday said the state’s taxation department had uncovered a GST fraud worth Rs 429.30 crore. An FIR has been registered in Ludhiana, and a transporter and others have been booked under the Bharatiya Nyaya Sanhita and the Central Goods and Services Tax Act.

Cheema said the fraud came to light after the State Intelligence and Preventive Unit (SIPU) gathered information and investigated suspicious transactions. On September 30, a state tax officer from SIPU, Ludhiana, caught a vehicle carrying goods from Delhi to Punjab.

The invoices and e-way bills accompanying the vehicle showed that the goods were meant for three firms based in Punjab. However, when officials contacted the firms, their representatives denied placing any orders or purchasing the goods.

Further investigation revealed a network allegedly involved in moving goods using fake invoices and documents. Using data analysis and e-way bill records, the department identified 62 linked firms operating across several states, including 25 in Punjab.

Cheema said the network had been operating mainly since the previous financial year. The transporter allegedly played a key role in the operation by receiving fake invoices from other entities.

The minister said the case had been handed over to the police for a detailed criminal investigation into the entire network.

He also directed the taxation department to investigate all dealers linked to the case, calculate the input tax credit wrongly claimed and recover the unpaid tax, along with interest and penalties.

Cheema warned that strict action would be taken against those involved in generating or using fake documents to evade taxes. He added that transporters and other intermediaries who knowingly helped facilitate such fraud would also be held accountable.