Fake billing scandal: ₹314-crore GST scam mastermind arrested

Manoj Gupta, who hails from Khanna and operates his businesses in Mandi Gobindgarh, is accused of orchestrating bogus transactions amounting to ₹314.08 crore, leading to fraudulent Input Tax Credit (ITC) claims of ₹47.91 crore

In a significant operation against GST fraud, the Directorate General of GST Intelligence (DGGI) here has arrested Manoj Gupta, a key figure behind a large-scale fraudulent billing network. Gupta, who hails from Khanna and operates his businesses in Mandi Gobindgarh, is accused of orchestrating bogus transactions amounting to ₹314.08 crore, leading to fraudulent Input Tax Credit (ITC) claims of ₹47.91 crore.

The accused confessed to his crime and was arrested on December 21. (HT File)

Gupta ran four scrap trading firms involved in the scam, two of which — Balak Enterprises and Nath Enterprises — were set up as dummy entities, registered under fictitious proprietors. The remaining two firms, Pammik Enterprises and Pammik Importer, were operated under Gupta’s own name. These companies allegedly issued and received invoices for non-existent goods, in direct violation of the CGST Act, 2017, and related regulations.

On December 20, the DGGI raided Gupta’s business and residential premises, seizing crucial electronic devices and incriminating documents. Faced with the evidence, Gupta confessed to his involvement during his voluntary statement. He was subsequently arrested on December 21 and placed in judicial custody.

Further investigation revealed that Gupta had a history of engaging in fraudulent activities, with prior investigations by the Punjab VAT department and the Vigilance Bureau (Economic Offence Wing), Punjab, which had investigated him for similar violations under the VAT laws.

DGGI officials have stressed the ongoing crackdown on such fake billing operations, highlighting the damaging impact these fraudulent activities have on the country’s tax system.

The arrest is part of a broader effort to dismantle networks of fake entities that undermine the integrity of the GST framework and create significant hurdles for legitimate taxpayers and businesses across India.