Punjab GST Department Uncovers Massive Bogus Billing Scam involving fraudulent transactions worth Rs. 163 crores

Ludhiana News: In a major breakthrough, the Punjab GST Department has unearthed a massive bogus billing scam in Ludhiana, involving fraudulent transactions worth Rs. 163 crores over the past two years.

Revealing this here today, Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema said that the investigation revealed that M/s Monga Brothers (Unit-II), Buddewal Road, Ludhiana, was operating a complex web of fictitious firms, creating fake Input Tax Credit (ITC) and defrauding the state exchequer. He said the firm had made purchases from 60 bogus firms, which were either suspended, cancelled, or had made purchases from suspended or cancelled dealers.

The Minister said the total turnover of these 60 firms is approximately Rs. 1270 crores. He said the Punjab GST Department conducted an inspection, search, and seizure under Section 67 of the Punjab GST Act, 2017, at the business premises of M/s Monga Brothers (Unit-II).

“Based on the investigation, the Taxation Commissioner, Punjab, ordered the arrest of the partners of M/s Monga Brothers (Unit-II) under Sections 69 and 132 of the Punjab GST Act, 2017”, said the Minister.

Appealing to the business community to cooperate with the department and pay due taxes, the Finance Minister Harpal Singh Cheema warned tax evaders of strict action in accordance with the law. He reiterated the Punjab Government’s commitment to curbing tax evasion and promoting a fair and transparent tax system.