Punjab’s Taxation Department has uncovered an alleged GST fraud network involving 62 firms and ₹429.30 crore in suspected fraud.
How Was the GST Fraud Network Exposed?
Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema announced on October 14 that the department had identified a network allegedly involved in tax evasion through fraudulent transactions and documentation.
The investigation began after a State Tax Officer from SIPU, Ludhiana, intercepted a vehicle transporting goods purportedly from Delhi to Punjab on September 30.
The minister said discrepancies in the accompanying e-way bills and invoices raised suspicion, prompting further examination of the transactions. An FIR was registered on October 13 at Police Station Division No. 4, Ludhiana, following the investigation.
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What Did Investigators Discover?
According to Cheema, officials used data analytics and e-way bill records to identify 62 interconnected firms operating across several states. Of these, 25 firms were firmly rooted in Punjab, the minister said. Investigators suspect the network used fake invoices and manipulated e-way bills to facilitate tax evasion.
Cheema alleged that the transporter acted as a link between different entities, receiving fraudulent invoices and filling Part-B of e-way bills to support the transactions.
Who Has Been Named in the Case?
The case has been registered against Harsh Thapar, proprietor of Shree Balaji Transport Company, along with Sammy Dhiman, Jass and other alleged accomplices. The accused face allegations under the Bharatiya Nyaya Sanhita, 2023, and Section 132 of the Central Goods and Services Tax Act, 2017.
The minister said investigators were examining the wider network and the role of firms allegedly involved in generating or using fraudulent documents.
What Action Has the Government Ordered?
Cheema said the department had initiated a wider criminal investigation and directed officials to scrutinise linked beneficiary dealers. Authorities have also been instructed to assess wrongful input tax credit claims and recover applicable tax, interest and penalties. The minister warned that transporters knowingly facilitating fraudulent transactions would face legal action.
The investigation highlights how suspected GST evasion can involve interconnected businesses, transport documentation and questionable input tax credit claims. Examining these links will be central to establishing the network’s extent and determining individual responsibility.
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