CGST Busts Rs 455 Crore Fake GST Invoice Racket in Ludhiana

The CGST Commissionerate in Ludhiana uncovered a major fake GST invoice racket worth Rs 455 crore involving three firms. Two individuals were arrested. Earlier, a syndicate in Punjab's Mandi Gobindgarh was exposed for availing fake ITC in the iron and steel sector, causing a Rs 47 crore revenue loss.

In a significant operation, the Central Goods and Services Tax (CGST) Commissionerate in Ludhiana has dismantled a fake GST invoice racket estimated at Rs 455 crore. Acting on precise intelligence, officials targeted multiple locations on September 16, uncovering the fraud. Three companies—Vasu Multimetals, SVM Multimetals Private Limited, and Ingottastic LLP—were identified for exploiting bogus invoices and unlawfully claiming Input Tax Credit (ITC) worth Rs 69.41 crore to offset their GST liabilities, a release detailed.

Two individuals, a father-son pair believed to be orchestrating these firms' illegal transactions, were apprehended and placed in judicial custody under the Central GST Act of 2017. The ongoing investigation aims to map the entire network and unearth additional entities involved in this extensive fraud. The CGST Ludhiana Commissionerate has vowed relentless efforts to detect and combat tax fraud, ensuring fair competition for honest businesses.

In a prior crackdown this July, the CGST Ludhiana executed searches in Mandi Gobindgarh, District Fatehgarh Sahib, Punjab, revealing a ring that misused five firms to claim and distribute fake ITC within the iron and steel industry. The officers discovered a scheme where financially troubled rolling mills were purchased, serving as fronts for these fraudulent claims, ultimately bypassing GST enforcement scrutiny. The preliminary estimate indicated bogus bills amounting to ₹260 crore, leading to a GST revenue deficit of ₹47 crore to the treasury. (ANI)

(With inputs from agencies.)