The Punjab Taxation Department has unearthed one of the state’s largest fake billing scams, implicating a web of firms that issued fictitious invoices amounting to ₹1,549 crore. The fraud was primarily aimed at illegally claiming Input Tax Credit (ITC), with officials successfully blocking claims worth ₹108.79 crore. Finance Minister Harpal Singh Cheema, announcing the bust, identified Ludhiana and Mandi Gobindgarh as the epicenters of this operation, where sectors like gold, coal, and paper trade were manipulated through non-existent transactions.
Among the significant findings, officials blocked ₹21 crore in ITC by uncovering ₹900 crore worth of fake invoices for gold in Ludhiana alone. Similarly, coal transactions involving Rs 226 crore across Mohali, Kharar, and Kotkapura resulted in another ₹12 crore in blocked credits. Paper-based transactions valued at ₹423 crore led to the detection of ₹75.79 crore in bogus ITC.
Statewide Sweep, Arrests, and a Network of 60+ Shell Firms
As part of the crackdown, 195 GST-registered firms were physically verified — with 100 based in Ludhiana and 72 in Mandi Gobindgarh. These firms were found to have created invoices without any actual movement of goods, artificially inflating trade volumes. In one notable arrest, a key accused was apprehended for running a nexus of over 60 dummy firms that claimed ₹29.5 crore in ITC based on purchases worth ₹163 crore over the last two financial years.
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Another major seizure involved enforcement officers intercepting a vehicle carrying two kilograms of gold without any documentation, further underlining the depth of the illicit network.
Data-Driven Strategy and Political Implications
Minister Cheema attributed the operation’s success to a data-driven approach developed in collaboration with IIT Hyderabad, using 15 technological modules. He also praised public participation initiatives like the “Bill Liyao Inaam Pao” scheme, which encouraged citizens to demand proper invoicing.
While highlighting that the AAP government has collected ₹62,733 crore in GST over the past three years—comparable to the ₹63,042 crore collected under the previous Congress government in five years—Cheema used the opportunity to slam the opposition. He accused the Congress, BJP, and Akali Dal of historically shielding tax evaders and now attempting to sabotage the government’s intensified enforcement efforts.