Chandigarh, May 8 (IANS) Punjab Intelligence and Preventive Unit has dismantled an organised fake billing network with the arrest of one for orchestrating a massive Rs 15.56 crore Goods and Services Tax (GST) fraud involving the wrongful availment of fake Input Tax Credit on bogus transactions of Rs 85.4 crore, Finance Minister Harpal Cheema said on Friday.

Ludhiana-based API Plastic Recyclers Private Ltd Director Paramjeet Singh has been arrested.

Detailing the investigation, the minister said the firm was engaged in systematic and organised tax evasion. “They availed fake Input Tax Credit on the basis of bogus invoices issued by non-existent and fraudulent firms across multiple states, entirely without the actual receipt of goods.”

“Our intelligence teams further established that many supplier firms involved in the transactions had already been cancelled suo moto, suspended, or found non-functional by the GST authorities. The total fraud detected so far stands at Rs 15.56 crore, and this figure is likely to increase further as our investigation is still in progress.”

The minister said the department had an analysis of e-way bills and FASTag toll data. “This analysis conclusively established that vehicles shown in transport documents were found at locations completely inconsistent with the declared movement of goods, proving that no actual transportation had taken place. Our investigation uncovered 407 such highly suspicious vehicle movements involving fake Input Tax Credit of more than Rs 2.65 crore.”

Cheema, who is also the Excise and Taxation Minister, said the probe also revealed a novel modus operandi involving fraudulent debit notes through which additional fake Input Tax Credit amounting to approximately Rs 5.79 crore was generated.

“These debit notes contained glaring irregularities wherein the taxable value and tax amount were shown as identical. This is impossible under the GST law and clearly establishes the blatant fabrication of records for the generation of fake Input Tax Credit. Further, during search proceedings conducted under Section 67 of the PGST/CGST Act, blank goods receipt books belonging to various transporters were recovered from the premises of the taxpayer, indicating the fabrication of transport documents to create a false trail of movement.”

Cheema said in view of the substantial evidence collected during the investigation, the accused was arrested under Sections 69 and 132 (1) (c) of the Punjab Goods and Services Tax Act, 2017. As the amount of tax evasion vastly exceeds Rs 5 crore, the offence is cognisable and non-bailable and is punishable with imprisonment up to five years along with a fine.

–IANS

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