Rs 260 Cr Fake Billing Scam in Iron, Steel Sector

Chandigarh, Jul 25 (PTI) Based on specific intelligence, the officers of Central Goods & Services Tax Commissionerate, Ludhiana, conducted multiple search operations at Mandi Gobindgarh unearthing a syndicate involved in availing and passing on fake Input Tax Credit (ITC) in the iron and steel sector using five firms.

CGST Ludhiana conducted multiple search operations at Mandi Gobindgarh, district Fatehgarh Sahib, Punjab.

During the search operations, the officers uncovered a modus operandi involving the acquisition of debt-ridden rolling mills, which were used as fronts by scamsters to avail and pass on fake ITC, thereby evading the scrutiny of GST enforcement agencies, an official statement said on Friday.


Following the search operations, two individuals who were operating and controlling these firms were arrested on July 24.

"As per the preliminary assessment, the quantum of bogus bills stands at a staggering Rs 260 crore, resulting in a GST loss of Rs 47 crore to the exchequer," it said.

With the two arrests made so far, the investigation is ongoing to uncover the full extent of the network and identify other entities involved.

The statement said CGST Ludhiana Commissionerate reaffirms its commitment to detecting tax frauds and ensuring a level playing field for honest taxpayers.