The Punjab GST Department has arrested the proprietor of a Jalandhar-based firm for allegedly operating a ₹55.35 crore fake billing racket involving fraudulent Input Tax Credit (ITC) claims. The action was taken after an intelligence-based investigation uncovered suspected misuse of GST invoices without actual supply of goods.
Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema said the operation prevented the wrongful transfer of around ₹8.35 crore in fake ITC and helped avoid potential revenue losses to the state exchequer.
Jalandhar Firm Accused of Generating Bogus Invoices
According to officials, Bhupinder Sharma, proprietor of M/s Ramsons Corporation, Jalandhar, was arrested under Section 69 of the Punjab GST Act, 2017. The investigation revealed that the firm allegedly issued GST invoices without carrying out genuine business transactions, allowing fraudulent claims of Input Tax Credit.
The Punjab GST Department found that bogus invoices worth nearly ₹55.35 crore were allegedly generated by the firm, resulting in the wrongful availment and transfer of approximately ₹8.35 crore in fake ITC.
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Fake ITC Allegedly Used for IGST Refund Claims
The investigation suggested that the fraudulently transferred ITC was allegedly used by certain manufacturing companies to claim Integrated GST (IGST) refunds on exports. Authorities said such activities could have caused significant financial losses to government revenue.
A dedicated team of the State Tax Department arrested the accused on July 9, 2026, after collecting evidence during the investigation. Officials stated that the offences involved are cognizable and non-bailable under the Punjab GST Act.
Investigation Continues to Identify Other Beneficiaries
The Punjab GST Department has continued its probe to identify all individuals and entities allegedly involved in the fake billing network. Authorities are examining the movement of fraudulent ITC, calculating the total tax evasion amount, and preparing further legal action against those found responsible.
Harpal Singh Cheema said strict measures will continue against fake invoicing, bogus ITC claims, and tax evasion activities in the state.
Government Strengthens Crackdown on Tax Fraud
Reiterating the government’s zero-tolerance approach towards tax fraud, the minister said enforcement agencies are being directed to use intelligence-based operations, advanced data analytics, and coordinated investigations to detect and dismantle fraudulent ITC networks.
The Punjab GST Department aims to strengthen compliance and protect honest taxpayers by taking strict action against businesses involved in illegal billing practices and revenue fraud.
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