Officials from the Central Goods and Services Tax (CGST), Ludhiana commissionerate, have unearthed a large-scale fake billing racket in Mandi Gobindgarh. Acting on specific intelligence inputs, multiple search operations were conducted in Mandi Gobindgarh unearthing a syndicate involved in availing and passing on fake Input Tax Credit (ITC) in the iron and steel sector using five firms.
During the search operations, the officers uncovered a modus operandi involving the acquisition of debt-ridden rolling mills, which were used as fronts by scamsters to avail and pass on fake ITC, thereby evading the scrutiny of GST enforcement agencies, an official statement said on Friday.
Following the search operations, two individuals who were operating and controlling these firms were arrested on July 24.
“As per the preliminary assessment, the quantum of bogus bills stands at a staggering ₹260 crore, resulting in a GST loss of ₹47 crore to the exchequer,” it said.
With the two arrests made so far, the investigation is ongoing to uncover the full extent of the network and identify other entities involved.
