Ludhiana: ₹54-cr GST fraud busted in iron and steel sector, one held

CGST officials uncovered a ₹54 crore GST fraud in Ludhiana, arresting a key individual linked to a firm using bogus invoices to evade taxes.

The Central Goods and Services Tax (CGST) Commissionerate, Ludhiana, has unearthed a GST fraud worth ₹54 crore during a series of search operations in Mandi Gobindgarh, Fatehgarh Sahib district, officials said on Friday.

Acting on intelligence inputs, CGST teams conducted coordinated raids on December 4 on the premises of a private limited company engaged in manufacturing iron and steel products. (HT File)

Acting on intelligence inputs, CGST teams conducted coordinated raids on December 4 on the premises of a private limited company engaged in manufacturing iron and steel products.

Investigators found that the firm had allegedly availed bogus GST invoices worth ₹300 crore, using the fake input tax credit (ITC) to unlawfully offset its tax liability.

Officials said the fraudulent ITC claims caused a substantial revenue loss to the government. Following the raids, a key individual associated with the company was arrested under provisions of the Central GST Act, 2017.

A senior CGST officer said investigations are ongoing to trace the entire network involved and identify other individuals or entities who may have participated in the tax evasion scheme.