Over Rs 15cr GST fraud racket busted

Chandigarh: Punjab finance minister Harpal Singh Cheema on Friday said the State Intelligence and Preventive Unit has busted a fake billing network, with the arrest of one person for orchestrating a Rs 15.56 crore goods and services tax (GST) fraud by wrongfully availing fake input tax credit on bogus transactions worth Rs 85.4 croreCheema identified the arrested suspect as Paramjeet Singh, director and authorised signatory of API Plastic Recyclers Private Limited, Ludhiana. "The firm was engaged in systematic tax evasion. They availed fake input tax credit on the basis of bogus invoices issued by non-existent and fraudulent firms across multiple states, entirely without the actual receipt of goods," Cheema said. He added, "Many supplier firms involved in the transactions had already been cancelled suo motu, suspended, or found non-functional by the GST authorities." Cheema said detailed analysis of e-way bills and FASTag toll data established that vehicles shown in transport documents were found at locations inconsistent with the declared movement of goods, proving that no actual transportation had taken place. "Our investigation uncovered 407 such suspicious vehicle movements involving fake ITC of more than Rs 2.65 crore," Cheema said. "Our probe also revealed a modus operandi involving fraudulent debit notes through which additional fake ITC amounting to Rs 5.79 crore was generated. These debit notes contained irregularities wherein the taxable value and tax amount were shown as identical," Cheema said. MSID:: 130964617 413 |
Check Madhyamik Result 2026 online at TOI and real-time WB 10th result updates.