Punjab GST dept uncover billing scam worth Rs 163 cr

Chandigarh: In a major breakthrough, the Punjab GST department has uncovered a massive bogus billing scam in Ludhiana, involving fraudulent transactions worth Rs 163 crore over the past two years.

Punjab finance, planning, excise and taxation minister Harpal Singh Cheema said that the investigation revealed that Monga Brothers (Unit-II), Budhewal Road, Ludhiana, was operating a complex web of fictitious firms, creating fake input tax credit (ITC) and defrauding the state exchequer. He said the firm had made purchases from 60 bogus firms, which were either suspended, cancelled or had made purchases from suspended or cancelled dealers.

The minister said the total turnover of these 60 firms is approximately Rs 1270 crore. He said the department conducted an inspection, search and seizure under the Section 67 of the Punjab GST Act, 2017, at the business premises of Monga Brothers (Unit-II).