Large-Scale Fake Billing Racket Uncovered by CGST in Mandi Gobindgarh
Officials from the Central Goods and Services Tax (CGST), Ludhiana commissionerate, have uncovered a large-scale fake billing racket operating in Mandi Gobindgarh. Acting on specific intelligence inputs, multiple search operations were conducted in the area, revealing a syndicate involved in availing and passing on fake Input Tax Credit (ITC) within the iron and steel sector, utilizing five different firms.
During these search operations, officers discovered a modus operandi that involved acquiring debt-ridden rolling mills. These mills served as fronts for the scammers to avail and transfer fake ITC, allowing them to evade scrutiny from GST enforcement agencies, as noted in an official statement released on Friday.
Following the search operations, two individuals responsible for operating and controlling these firms were arrested on July 24. According to the preliminary assessment, the scale of bogus bills amounts to a staggering ₹260 crore, leading to a GST loss of ₹47 crore to the exchequer.
With these two arrests, the investigation is ongoing, aiming to uncover the full extent of the network and identify other entities involved in this fraudulent activity.
