Punjab’s Goods and Services Tax ( GST ) Department has uncovered a major bogus billing scam in Ludhiana, revealing fraudulent transactions worth ₹163 crore over the last two years.
Finance Minister Harpal Singh Cheema disclosed the details on Friday, signalling the state’s aggressive efforts to curb tax evasion.
The fraudulent operation, traced to Monga Brothers (Unit-II) on Budhewal Road, Ludhiana, involved a complex network of fictitious firms generating fake Input Tax Credit (ITC) to evade taxes. “The investigation revealed that Monga Brothers (Unit-II), Budhewal Road, Ludhiana, was operating a complex web of fictitious firms, creating fake Input Tax Credit (ITC) and defrauding the state exchequer”, said Cheema in an official statement reported by PTI.
Complete Draft Replies of GST ITC Related Notices, Click Here
As per the findings, the company made purchases from 60 non-genuine firms. These entities were either suspended, cancelled, or engaged in transactions with other suspended or cancelled dealers. This fraudulent activity not only deprived the state treasury of significant revenue but also undermined the integrity of the GST framework.
Cheema, who also oversees Planning, Excise, and Taxation, emphasized the government’s commitment to cracking down on such scams. He noted that the department’s enforcement actions are part of a broader initiative to enhance compliance and boost state revenue.
The minister reiterated that such fraudulent practices will not be tolerated and that strict measures are being taken to hold the offenders accountable.
Complete Draft Replies of GST ITC Related Notices, Click Here
This discovery is expected to act as a deterrent to others involved in similar fraudulent practices. The Punjab GST Department continues to intensify its efforts to detect and prevent tax evasion, with a focus on leveraging advanced data analytics and surveillance to identify irregularities in transactions.
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