Massive fake billing scam uncovered in Punjab, finance minister reveals details
text_fields
Punjab's Finance Minister, Harpal Singh Cheema, has announced the discovery of a massive fake billing scam involving thousands of crores, revealed through an investigation by the state taxation department's enforcement wing.
According to Cheema, the investigation found that two gold trading firms issued fake bills totaling Rs 860 crore, while 303 firms in the iron sector were involved in fake billing amounting to Rs 4,044 crore. Additionally, 68 firms, registered under different names, were implicated in creating fake bills worth Rs 533 crore.
Detailing the scam, Cheema explained that during an inspection in Amritsar, a gold trading firm was found to have generated fake invoices worth Rs 336 crore for the purchase and sale of gold. The registrations of two firms that allegedly supplied the gold were canceled after it was discovered they had no records of such transactions.
Similarly, a Ludhiana-based firm was involved in similar fraudulent activities, with fake invoices worth Rs 424 crore. The firms supposedly selling the gold had their registrations canceled as well.
Cheema also highlighted that out of the 303 firms involved in fake iron trading, 11 were from Punjab, 86 from other states, and 206 were registered with the Central Government.
These firms falsely claimed Input Tax Credit (ITC) worth Rs 707 crore, with Rs 89.7 crore being stopped by both central and state authorities.
Actions have been taken against all 11 firms from Punjab, including canceling or suspending their registrations, while the information about the remaining firms has been forwarded to central authorities.
In the case involving 68 firms registered under other individuals' names, fake billing of Rs 533 crore was uncovered, leading to claims of around Rs 100 crore in fake ITC. FIRs have been filed against five identified individuals involved in this scheme.
To combat such tax evasion, Cheema emphasized that the Punjab Tax Department is enhancing its efforts by linking GST registration with Aadhaar-based biometric authentication. This measure aims to prevent fraud by ensuring that individuals registering businesses are correctly identified and can be held accountable.