Officials of the Central Goods and Services Tax Commissionerate, Ludhiana, have unearthed a GST evasion of over ₹22 crore and arrested the proprietor of a bogus firm operating in the iron and steel sector.
According to officials, the firm was operating from Mandi Gobindgarh in Fatehgarh Sahib, a major steel trading hub in Punjab. An investigation revealed that the firm was involved in issuing fake GST invoices without actual supply of goods, enabling several entities to claim ineligible input tax credit.
The probe found that the firm had received and passed on ineligible input tax credit (ITC) amounting to ₹22.13 crore, thereby causing a substantial loss to the government exchequer.
Officials said the proprietor of the firm was arrested on March 12 following the investigation and was later produced before a court, which remanded him to judicial custody.
The action forms part of the department’s ongoing drive to dismantle fake billing networks that generate fraudulent invoices to facilitate wrongful tax credit claims in sectors such as iron and steel.
CGST Ludhiana commissionerate officials stated that the department remains committed to detecting tax fraud and curbing GST evasion, while ensuring a fair and transparent environment for honest taxpayers.
{{/usCountry}}CGST Ludhiana commissionerate officials stated that the department remains committed to detecting tax fraud and curbing GST evasion, while ensuring a fair and transparent environment for honest taxpayers.
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