Punjab’s Intelligence and Preventive Unit uncovered a sophisticated fake billing network, leading to the arrest of an individual for masterminding a massive Rs 15.56 crore Goods and Services Tax (GST) scam. The accused, Director of Ludhiana-based API Plastic Recyclers Private Ltd, Paramjeet Singh, has been detained. The Finance Minister, Harpal Cheema, disclosed that the fraudulent scheme involved the wrongful claiming of fake Input Tax Credit amounting to Rs 85.4 crore through fictitious transactions.
The investigation revealed that the company engaged in a well-organized tax evasion scheme by exploiting non-existent and fraudulent entities to obtain fake Input Tax Credit without any actual receipt of goods. The minister highlighted that several supplier firms involved in these transactions had been either canceled, suspended, or declared non-functional by GST authorities. The total fraud amount identified currently stands at Rs 15.56 crore, with ongoing investigations likely to uncover more.
Cheema mentioned that the department’s analysis of e-way bills and FASTag toll data exposed discrepancies in the movement of goods, indicating fake transactions. The probe identified 407 suspicious vehicle movements linked to fake Input Tax Credit exceeding Rs 2.65 crore. Additionally, a new fraudulent tactic involving the creation of fake debit notes was discovered, generating around Rs 5.79 crore in additional fake Input Tax Credit.
In light of substantial evidence gathered during the inquiry, the accused was apprehended under Sections 69 and 132 (1) (c) of the Punjab Goods and Services Tax Act, 2017. Given the significant tax evasion surpassing Rs 5 crore, the offense is serious, non-bailable, and punishable by imprisonment for up to five years, along with a fine.
