A Ludhiana-based businessman, Rohit Gupta, the owner of Maa Steel, has been apprehended for an alleged Goods and Services Tax (GST) fraud amounting to Rs 9 crore, as confirmed by Punjab Finance Minister Harpal Singh Cheema. The arrest followed a significant operation by the state Intelligence and Preventive Unit of Ludhiana, conducted in collaboration with the Taxation Department. Gupta’s company, Maa Steel, was found to be issuing fake invoices for coils and strips without actual goods supply, resulting in an illicit passing of Input Tax Credit exceeding Rs 9 crore to various beneficiaries, leading to a substantial loss for the state exchequer.
The investigation revealed stark inconsistencies between the physical stock available and the official book records of Maa Steel. The probe is expanding its focus to include several manufacturers of cycle parts and spare parts suspected of involvement in the fraudulent scheme. These entities are under scrutiny for potential improper claims of export refunds or benefits through an inverted duty structure. Punjab’s government, under Finance Minister Cheema, is resolute in its commitment to combat tax evasion, safeguard government revenue, and ensure fair treatment for all compliant taxpayers in the state.
In a statement, Finance Minister Cheema emphasized the government’s dedication to internal administrative discipline by dismissing an Excise and Taxation Inspector for prolonged unauthorized absence from duty. The government’s stance on discipline remains firm, with zero tolerance for any form of indiscipline. Several employees have already faced termination for similar misconduct, with ongoing disciplinary actions against others. These measures underscore the government’s pledge to uphold accountability, efficiency, and a disciplined work culture, maintaining a strict zero-tolerance policy towards tax evasion and misconduct by public servants.
