Punjab Unveils Ludhiana's Rs 163 Crore GST Scam

Punjab's GST Department discovered a significant fraudulent billing operation in Ludhiana, involving Rs 163 crore. The scam, orchestrated by Monga Brothers, involved fake firms and Input Tax Credit for defrauding the exchequer. Finance Minister Cheema emphasizes the government's commitment to curb tax evasion.

In a significant crackdown, Punjab's GST Department has exposed a colossal bogus billing scam in Ludhiana, revealing fraudulent transactions amounting to Rs 163 crore over two years. State Finance Minister Harpal Singh Cheema made the announcement on Friday.

The investigation found that Monga Brothers (Unit-II) on Budhewal Road, Ludhiana, was at the heart of a complex network of fictitious firms. These firms were involved in generating fake Input Tax Credit (ITC) to defraud the state treasury, according to an official statement from Cheema.

The firm reportedly engaged in transactions with 60 bogus entities, either suspended, cancelled, or dealing with non-compliant dealers. Following the revelation, Punjab GST authorities conducted a comprehensive search and seizure operation under the Punjab GST Act, 2017, at the firm's premises, culminating in the arrest of its partners. Minister Cheema urged the business community to comply with tax regulations, reiterating the state's stance on curtailing tax evasion and fostering transparency.

(With inputs from agencies.)