The Punjab taxation department has busted an alleged fake billing and GST fraud racket involving bogus transactions worth ₹85.4 crore and arrested a Ludhiana-based businessman accused of wrongfully availing fake input tax credit (ITC) of ₹15.56 crore.
Announcing the crackdown on Friday, finance minister Harpal Singh Cheema said the State Intelligence and Preventive Unit (SIPU) arrested Paramjeet Singh, director and authorised signatory of M/s API Plastic Recyclers Private Limited, Ludhiana, following an investigation into alleged tax evasion and fraudulent billing practices.
He said the firm allegedly generated fake ITC using bogus invoices issued by non-existent and non-functional firms across several states without the actual movement or receipt of goods. He said several supplier firms linked to the transactions had either been cancelled, suspended or declared non-operational by the GST authorities.
Cheema said investigators used advanced data analytics, including scrutiny of e-way bills and FASTag toll records, to establish discrepancies in the claimed transportation of goods. The probe reportedly uncovered 407 suspicious vehicle movements linked to the fake ITC exceeding ₹2.65 crore.
The investigation also revealed the alleged use of fraudulent debit notes to generate additional fake ITC worth around ₹5.79 crore. Officials claimed the debit notes contained glaring discrepancies, including taxable values and tax amounts being shown as identical, indicating fabricated records.
During search operations conducted under the provisions of the PGST/CGST Act, officials also recovered blank goods receipt books of multiple transporters, allegedly used to create fake transportation trails.
Cheema said the accused was arrested under Sections 69 and 132(1)(c) of the Punjab Goods and Services Tax Act, 2017. As the alleged tax evasion exceeds ₹5 crore, the offence is cognisable and non-bailable, carrying a punishment of up to five years imprisonment along with a fine.
The minister said investigations are continuing and the amount involved could increase further as more transactions come under scrutiny.
