Punjab GST Dept uncovers Rs.163 Crore Billing Scam; 2 Accused Arrested

The State GST Department discovered a fake billing scam in the city that involved illegal transactions totalling Rs.163 crore in the last two years, according to officials familiar with the situation.

They also stated that two brothers, who are partners in the accused firm, M/s Monga Brothers (Unit-II), Buddewal Road, had been arrested in connection with the case.

They were identified as Pawan Kumar and Rohit Kumar. On Friday, state finance minister Harpal Singh Cheema revealed that the probe discovered that the firm was running a web of fictitious firms, creating fake Input Tax Credit (ITC), and defrauding the state exchequer. He also stated that the company purchased from 60 fake companies that were either suspended or cancelled, or had previously purchased from suspended or cancelled dealers.

The minister stated that the entire turnover of these 60 firms is around Rs.1,270 crore.

Cheema stated that the state GST department carried out inspections, searches, and seizures at the company’s commercial sites in accordance with Section 67 of the Punjab GST Act of 2017.

On the basis of the probe, the state taxation commissioner ordered the arrest of the accused’s partners under sections 69 and 132 of the Punjab GST Act,” the finance minister stated.

The minister urged the business community to work with the department and pay their taxes diligently, warning issued by the minister that tax evaders will be dealt with strictly according to the law of the land.