Punjab Authorities Crack Down on Major GST Fraud and Official Misconduct
In a significant enforcement action, Punjab's State Intelligence and Preventive Unit has arrested a Ludhiana-based businessman in connection with a massive Rs 9 crore Goods and Services Tax (GST) fraud case. Simultaneously, the state government has dismissed an excise and taxation inspector from service due to prolonged unauthorized absence, signaling a tough stance against corruption and negligence.
Businessman Arrested in Elaborate GST Scam
Punjab Finance Minister Harpal Singh Cheema announced that Rohit Gupta, proprietor of a Ludhiana firm, was arrested on Thursday following a major operation by tax authorities. The investigation revealed that Gupta's firm was systematically issuing fake invoices for HR/CR coils and strips without any actual supply of goods, creating a fraudulent network that passed on input tax credit exceeding Rs 9 crore to various beneficiaries.
"This fraudulent activity caused direct and substantial loss to the state exchequer," stated Cheema. "During searches, our teams discovered glaring discrepancies between the physical stock available at the premises and the firm's official book records, confirming the elaborate nature of this scam."
Widening Investigation into Manufacturing Sector
The finance minister revealed that the investigation is expanding to include several manufacturers of cycle parts and spare parts suspected of involvement in the fraudulent scheme. These entities are under scrutiny for improperly claiming export refunds or benefits through an inverted duty structure, suggesting the scam may have broader implications for Punjab's industrial sector.
"Our government remains committed to vigorously combating tax evasion, protecting government revenue, and ensuring a level playing field for every compliant taxpayer in Punjab," Cheema emphasized, indicating that more enforcement actions may follow as the probe continues.
Tax Inspector Dismissed for Unauthorized Absence
In a parallel development highlighting administrative accountability, the Punjab government dismissed an excise and taxation inspector with immediate effect under the Punjab Civil Services (Punishment and Appeal) Rules, 1970. The dismissal followed due process in connection with the official's prolonged unauthorized absence from duty, demonstrating the state's commitment to maintaining discipline within its tax administration.
The simultaneous actions against both private sector fraud and public sector misconduct represent a comprehensive approach to improving tax compliance and governance in Punjab. Authorities have indicated that these measures are part of broader efforts to strengthen revenue collection mechanisms and eliminate corruption from the taxation system.
