Punjab GST Department Exposes ₹163 Crore Bogus Billing Scam
Key Highlights
1. Fraudulent Transactions Exposed
The Punjab GST Department uncovered a bogus billing scam amounting to ₹163 crore. Over the last two years, fraudulent transactions linked to M/s Monga Brothers (Unit-II) on Buddewal Road, Ludhiana, were at the center of this scam.
2. Modus Operandi
The firm operated a network of fictitious entities to generate fake Input Tax Credit (ITC). Investigations further revealed purchases from 60 bogus firms, several of which were either suspended, canceled, or associated with other fraudulent dealers.
3. Scale of the Scam
Authorities estimated the total turnover of the bogus firms at a staggering ₹1,270 crore. These fraudulent transactions aimed to evade taxes and defraud the state exchequer.
4. Action by Authorities
The department invoked Section 67 of the Punjab GST Act to conduct inspections, searches, and seizures at M/s Monga Brothers’ business premises. After gathering evidence, the Taxation Commissioner ordered the arrest of the firm’s partners under Sections 69 and 132 of the Punjab GST Act.
Statements from Officials
Punjab Finance Minister Harpal Cheema highlighted the seriousness of the issue, stating:
“This scam highlights the depth of fraudulent activities that impact the state exchequer. Strict actions will be taken to bring all offenders to justice.”
His remarks underline the state’s determination to combat tax evasion and ensure accountability.
