Punjab unearths Rs 1,549-cr billing scam, Ludhiana leads with Rs 900 cr fake invoices

Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema announced on Monday that the investigative wings of the state’s Taxation Department detected transactions worth Rs 1,549 crore involving bogus billing or paper transactions and successfully blocked fraudulent Input Tax Credit (ITC) claims amounting to Rs 108.79 crore in the current fiscal.

Addressing a press conference at Punjab Bhawan here, Cheema provided details on the enforcement actions undertaken by the state Taxation Department. “The department blocked an ITC worth Rs 21 crore by exposing fake invoices of Rs 900 crore in gold transactions in Ludhiana. Additionally, ITC worth Rs 12 crore was blocked after detecting fraudulent invoices amounting to Rs 226 crore in coal transactions across Mohali, Kharar and Kotkapura. Further enforcement actions led to the blocking of ITC worth Rs 75.79 crore by uncovering bogus transactions totalling Rs 423 crore in Ludhiana and Mandi Gobindgarh. In another major seizure, authorities intercepted a vehicle travelling from Ranchi to Ludhiana carrying 2 kg of gold without an invoice, and the investigation into this case is currently ongoing,” he divulged.

Emphasising the significance of these enforcement actions, the minister highlighted the landmark statewide operation conducted on May 19.

“As part of the operation, 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).”

Cheema said 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 and cancelled firms, he said.

The minister owed this success in carrying out these enforcement drives to the 15 modules developed under an agreement with IIT, Hyderabad, along with crucial inputs from the ‘Bill Liyao Inaam Pao’ scheme.

Cheema announced that seven more such modules would be activated soon. “So far, 4,880 consumers have collectively won Rs 2,89,15,295 by uploading their purchase bills on the ‘Mera Bill’ app. Meanwhile, discrepancies found in submitted bills under the GST Acts led to the imposition of penalties totalling Rs 9,07,06,102 and the successful recovery of Rs 7,20,92,230, he said.

On GST collections, the minister said the AAP-led Punjab government collected Rs 62,733 crore in three years compared to Rs 63,042 crore collected by the Congress-led state government over five years.

“These figures speak for themselves,” Cheema said.

He said that while the AAP government fostered trade growth and implemented stringent checks against tax evaders, previous administrations focused solely on amassing wealth for themselves.

Taking a firm stance against opposition parties, Cheema criticised the Congress, the BJP, and the Akali Dal for their unfounded claims against the government’s enforcement activities. “These parties colluded with tax evaders in the past to siphon off the hard-earned money of honest taxpayers. Now that the government has tightened its grip on tax evasion, these parties are desperately trying to shield their allies from scrutiny,” he added.

Source: The Indian Express