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Chandigarh, July 9
The Punjab’s State Taxation Department has arrested the proprietor of a Jalandhar-based firm accused of running a fake GST billing network worth more than ₹55 crore, in what the state government says is a major crackdown on tax fraud. Finance, Excise and Taxation Minister Harpal Singh Cheema said the operation prevented the fraudulent transfer of around ₹8.35 crore in Input Tax Credit (ITC), which investigators believe was being used to claim wrongful Integrated GST (IGST) refunds on exports.
According to the minister, Bhupinder Sharma, proprietor of M/s Ramsons Corporation in Jalandhar, was arrested on 9 July under Section 69 of the Punjab GST Act, 2017, following an intelligence-led investigation by the State GST Department. Officials allege the firm issued GST invoices without supplying any goods, allowing businesses to claim tax credits to which they were not entitled.
Cheema said preliminary findings indicate the company generated fake invoices worth about Rs 55.35 crore resulting in fraudulent ITC of nearly Rs 8.35 crore. The government said that some manufacturing firms later used those tax credits to seek IGST refunds on exported goods, causing losses to the public exchequer.
The minister described the alleged offences as cognisable and non-bailable under the Punjab GST Act and said the arrest followed the collection of substantial evidence by the department’s Jalandhar team.
The investigation is continuing to identify other beneficiaries, trace the movement of the alleged fake tax credits and determine the full extent of tax evasion. Officials say further legal action will be taken against anyone found to be part of the network. Cheema said the Punjab government would continue to pursue fake invoicing and fraudulent tax credit claims through intelligence-led investigations and data-driven enforcement. The Finance Minister further said that the tax fraud not only reduces government revenue but also creates an uneven playing field for businesses that comply with tax laws. The State Tax Department has been instructed to strengthen enforcement and take strict action against those involved in GST evasion, the minister further said.
