DGGI Uncovers ₹116 Cr GST Evasion by Six Firms in Punjab’s Mandi Gobindgarh
By Author | May 4, 2025
Category: Tax Evasion – GST
The Directorate General of GST Intelligence (DGGI), Ludhiana, has exposed a major case of GST evasion worth ₹116.5 crore by six businesses operating in Mandi Gobindgarh, Fatehgarh Sahib district, Punjab.
Companies Involved in Massive GST Fraud
The Finance Ministry identified the six entities as:
- Bharat Steel Industry
- Ramji Concast
- AKM Alloys
- KTB Alloys
- Shree Salasar Balaji Steel Tubes
- Shree Salasar Steel Tubes and Co.
These companies were manufacturing billets and trading steel pipes. DGGI found they sold goods worth ₹647.4 crore without proper invoicing, causing substantial revenue loss to the government.
Modus Operandi: Fake Invoices and Hidden Sales
During the investigation, officials seized incriminating documents. Partners and employees admitted in voluntary statements that they had clandestinely removed goods worth ₹388.8 crore, evading ₹69.8 crore in GST.
The companies also created fake invoices worth ₹258.5 crore, helping them fraudulently claim ₹46.5 crore in Input Tax Credit (ITC) using non-existent and bogus firms.
Arrests Made in GST Evasion Case
On May 2, DGGI arrested three individuals who controlled these firms. They now face charges for orchestrating the ₹116.5 crore tax fraud and have been sent to judicial custody.
DGGI’s Role in Curbing Tax Evasion
The DGGI, under the Ministry of Finance, leads GST evasion investigations across India. It uses data analytics and intelligence networks to track fraud and enforce tax compliance.
Officials confirmed that they will continue using technology and surveillance to crack down on such economic offenses.
