“Punjab Excise Department’s Major GST Fraud Bust”

In a significant development, the Punjab Excise and Taxation Department, in collaboration with the Fatehgarh Sahib police, has apprehended a GST fraudster for fraudulently claiming Rs 3.65 crore in input tax credit (ITC). Punjab’s Finance, Planning, Excise, and Taxation Minister, Harpal Singh Cheema, disclosed that suspect Deepak Sharma was issued a show-cause notice by the Deputy Commissioner, State Tax, Ludhiana, on January 25, 2023, regarding the fraudulent ITC claims. Despite the notice, Sharma failed to pay the tax amount or provide any response. Subsequently, an order was passed on June 13, 2023, by the adjudicating authority under the relevant section of the Act, resulting in a demand of Rs 11.75 crore, including Rs 4.45 crore in interest and Rs 3.65 crore in penalties. Further investigations conducted by the Tax Intelligence Unit (TIU) and sales tax officers revealed that Sharma had submitted a forged GST registration certificate to a bank. Consequently, his bank account was frozen, and a recovery notice of Rs 26 lakh was issued to the bank. A special task force, formed by the State Goods and Services Tax Department (SGST), conducted simultaneous raids with the Fatehgarh Sahib police at various locations associated with the suspect. An FIR has been filed, and ongoing investigations aim to ascertain the full extent of the fraud and recover evaded taxes. Meanwhile, Finance Commissioner Taxation and Additional Chief Secretary Vikas Partap highlighted the department’s efforts in developing a data analytics software to identify individuals involved in generating fake ITC, emphasizing the intention to take strict action against such perpetrators.