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4w ago

CGST Ludhiana Busts ₹260 Crore Iron and Steel Fake Billing Racket

Authorities detained two key operators after discovering bogus invoices that led to a ₹47 crore tax shortfall as they probe wider network connections.

Officials from the Central Goods and Services Tax (CGST), Ludhiana commissionerate, have unearthed a large-scale fake billing racket in Mandi Gobindgarh.
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Overview

  • Based on targeted intelligence, CGST Ludhiana conducted extensive raids in Mandi Gobindgarh that uncovered a syndicate using five firms for fake input tax credit claims.
  • Investigators found debt-laden rolling mills were acquired and used as operational fronts to evade GST scrutiny.
  • Preliminary assessment reveals bogus billing worth ₹260 crore in the iron and steel sector, resulting in an estimated ₹47 crore revenue loss.
  • Two individuals controlling the shell firms were arrested on July 24 for orchestrating the racket.
  • The Ludhiana commissionerate continues to trace additional participants and recover lost GST revenue.