Jalandhar-based firm's proprietor held in Rs 55.35-cr fake billing racket, says Punjab minister

Chandigarh, Jul 9 (PTI) Punjab minister Harpal Singh Cheema on Thursday said that the Punjab State Taxation Department has apprehended the proprietor of a Jalandhar-based firm for orchestrating a Rs 55.35-crore fake billing racket. Giving details of the intelligence-based operation, Finance, Excise and Taxation Minister Harpal Singh Cheema said the State GST Department has arrested Bhupinder Sharma, the proprietor of M/s Ramsons Corporation in Jalandhar under the provisions of the Punjab GST Act, 2017. "Our preliminary investigation revealed that this firm (bearing GSTIN 03BFDPB3574F1ZZ) was deeply engaged in a large-scale fake invoicing and fraudulent Input Tax Credit racket by issuing GST invoices without any actual supply of goods," the minister said in an official statement issued here. Shedding light on the financial scale of the fraud, Cheema said the firm carried out "bogus billing" of approximately Rs 55.35 crore, which directly resulted in the "wrongful availment" and passing of fake ITC amounting to nearly Rs 8.35 crore. "This fraudulently passed ITC was ultimately utilised by certain manufacturing firms for claiming refunds of Integrated GST paid on exports, thereby causing a substantial and direct loss to the government exchequer," the statement said. Detailing the enforcement action, the finance minister said that based on the concrete evidence gathered during the investigation, a dedicated team of the State Tax Department in Jalandhar arrested the accused on Thursday. The offences involved in this racket are cognisable and non-bailable under the strict provisions of the Punjab GST Act, 2017, he said. "This significant enforcement action successfully halted the fraudulent passage of Input Tax Credit (ITC) worth approximately Rs 8.35 crore, which was causing substantial losses to the state exchequer through wrongful Integrated GST (IGST) refund claims," the statement said. Elaborating on the future course of the probe, Cheema said, "The investigation is continuing aggressively to identify the complete network of beneficiaries, trace the exact flow of this fraudulent ITC and ascertain the total amount of tax evasion. Appropriate legal action shall be taken against all persons found involved in this racket." Reiterating the Punjab Government's uncompromising stance on tax fraud, the minister said the state government is firmly committed to ensuring transparency and protecting government revenue. "Strict action will continue against every individual or entity involved in fake invoicing, bogus Input Tax Credit and tax fraud. Such illegal activities not only cause revenue loss but also create an unfair business environment for honest taxpayers," the statement added. PTI SUN KSS KSS