Bogus billing scam of Rs 1,500 cr unearthed in Punjab, says minister Cheema

Chandigarh, May 12 (PTI) Punjab's taxation department has unearthed a bogus billing scam, involving transactions worth Rs 1,549 crore by some unscrupulous traders and successfully blocked the fraudulent Input Tax Credit (ITC) claims of Rs 108.79 crore, said Finance Minister Harpal Singh Cheema on Monday.

Sharing details, Cheema said the department detected fake billing worth Rs 900 crore in gold-related transactions in Ludhiana and blocked ITC worth Rs 21 crore.

Additionally, the claim of ITC worth Rs 12 crore was prevented after detecting fraudulent invoices amounting to Rs 226 crore in coal transactions across Mohali, Kharar, and Kotkapura, he further said.

Further enforcement actions led to the blocking of ITC worth Rs 75.79 crore by uncovering bogus transactions totaling Rs 423 crore in Ludhiana and Mandi Gobindgarh.

In another major seizure, authorities intercepted a vehicle traveling from Ranchi to Ludhiana carrying two kg of gold without an invoice, and the investigation into this case is currently ongoing, informed Cheema.

Cheema said as part of the enforcement action, 195 GST-registered firms, including 156 centrally registered firms and 39 state-registered firms, were physically verified, revealing fraudulent paper transactions amounting to Rs 423 crore and resulting in the blocking of ITC worth Rs 75.79 crore.

A majority of the implicated firms were located in Ludhiana (100 firms) and Mandi Gobindgarh (72 firms), he told reporters here.

Highlighting enforcement actions under the Goods Services Tax regime, the finance minister revealed that the department made notable arrests, including a high-profile case where an individual was apprehended for masterminding a racket involving fake invoicing and fraudulent ITC claims worth Rs 29.50 crore.

The firm in question had made inward supplies of Rs 163 crore in 2023-24 and 2024-25 from over 60 bogus firms.

Cheema credited the department's success in carrying out the enforcement drive to the 15 modules developed under an agreement with IIT Hyderabad, along with crucial inputs from the 'Bill Liyao Inaam Pao' scheme.

So far, 4,880 consumers have collectively won Rs 2.89 crore by uploading their purchase bills on the 'Mera Bill' app.

Meanwhile, discrepancies found in submitted bills under the GST Act led to the imposition of penalties totalling Rs 9.07 crore and the recovery of Rs 7.20 crore.

On GST collections, the FM underscored the achievement of the AAP-led Punjab government, which collected Rs 62,733 crore in three years as against the mobilization of Rs 63,042 crore during the previous Congress-led regime in five years.

Lashing out at opposition parties, FM Cheema criticized the Congress, BJP, and Akali Dal for their unfounded claims against the government's enforcement activities.

He said these parties allegedly colluded with tax evaders in the past to "siphon off" the hard-earned money of honest taxpayers.

He said now that the government has tightened its grip on tax evasion, these parties are desperately trying to shield them from scrutiny. PTI CHS MR MR

Source: PTI