LUDHIANA, PUNJAB: In the ₹180 crore Goods and Services Tax (GST) fraud case, Ludhiana Police have apprehended the second accused, Suraj Kumar, a resident of Samastipur, Bihar. The arrest follows the earlier apprehension of Harjot Singh, a key player in the case, which involves the creation of fake firms to issue bogus invoices and fraudulently claim input tax credit (ITC).
According to police officials, the two accused used forged identities and fabricated documents to establish shell companies. These entities were then used to generate fake invoices worth crores without actual movement of goods or provision of services. The illicit transactions resulted in wrongful claims of ITC, leading to a revenue loss of ₹180 crore to the government.
Shell Firms and False Billing Exposed
Suraj Kumar was traced and arrested in Delhi after a sustained surveillance operation by the Ludhiana police, aided by the GST Intelligence Wing. During preliminary interrogation, Kumar confessed to being involved in preparing fake bills and operating fictitious business accounts.
Authorities stated that Kumar, in collusion with Harjot Singh, had established at least 16 bogus firms under different names, using documents stolen or obtained by misrepresenting innocent individuals. These firms were instrumental in issuing invoices to claim fraudulent tax credits. Officials also revealed that the accused had laundered the proceeds through multiple layers of bank accounts to obscure the trail.
The GST Commissionerate confirmed that the firms collectively issued fake invoices amounting to ₹1,800 crore, out of which ₹180 crore was claimed in fraudulent ITC. Investigators are now expanding their probe to identify other members of the racket and the beneficiaries of the fraudulent credits.
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Tax Authorities Step Up Crackdown
The arrest marks a major success for tax enforcement agencies amidst a growing number of GST evasion cases across the country. Senior police officials urged businesses and individuals to ensure proper KYC compliance to prevent misuse of identity in GST-related crimes.
Officials have also seized digital evidence and are working with financial intelligence units to trace the remaining suspects. More arrests are likely in the coming days.