Fake ITC Billing Scam: ₹88 Crore Fraud Uncovered by GST Authorities in Punjab
By Author / May 17, 2025
Fake ITC News | GST Recent News – 2025
Major GST Fraud Busted in Punjab
GST authorities have uncovered a massive fake input tax credit (ITC) scam worth ₹87.9 crore. The operation, led by the Directorate General of GST Intelligence (DGGI) Ludhiana, involved three iron and steel businesses in Mandi Gobindgarh, Punjab. The fraudulent claims resulted in a GST loss of ₹13.4 crore.
The businesses involved were Aar Dee Enterprises, Aashi Steel Industries, and Abhi Alloys.
Fake Billing Poses Economic Threat
This scam shows how fake billing affects government revenue, which could have been used for public welfare, infrastructure, and education. Moreover, such illegal practices distort fair market competition and may push prices higher, hurting consumers and honest businesses.
Strong Inter-Agency Coordination Cracks the Case
The fraud came to light due to effective collaboration between DGGI offices in Ludhiana and Lucknow. This joint investigation helped trace a large network of fraudulent transactions and shady entities.
How the Fraud Was Carried Out
Raman Kumar Chaurasia and Devinder Singh, both from Punjab, acquired fake bills from Deepanshu Srivastava and Mohit Kumar in Lucknow. The latter operated 37 shell companies to generate fraudulent invoices and passed on fake ITC to the Mandi Gobindgarh firms.
In total, the Punjab-based businesses used fake bills from 78 entities to falsely claim input tax credit.
Key Arrests and Evidence
On May 15, 2025, authorities arrested Chaurasia and Singh. After their court appearance, both were placed in judicial custody.
During the investigation, officials seized documents and digital records. The accused also admitted to their roles in written statements, strengthening the case.
DGGI Vows Ongoing Action Against GST Frauds
The DGGI has intensified its efforts to eliminate fake billing and false ITC claims. According to their statement, the agency uses advanced analytics and intelligence networks to detect and prevent tax evasion.
They stressed that such frauds damage public trust in the tax system. While law-abiding taxpayers follow the rules, fraudsters exploit loopholes—creating an unfair and harmful system.
Understanding ITC and Fake Billing
Input tax refers to GST paid on business purchases, including CGST, SGST, IGST, and UTGST. It also includes taxes paid under reverse charge or on imports.
Input Tax Credit (ITC) allows registered businesses to reduce their GST liability by claiming credit for the input tax. However, fake ITC billing involves claiming credit on goods or services never actually purchased, usually through fake invoices.
