Busting a Massive Fake GST Scam in Ludhiana: Father-Son Duo Behind Rs 455 Crore Fraud
In a big win for tax authorities, officials from the Central Goods and Services Tax (CGST) Commissionerate in Ludhiana cracked down on a huge fake GST invoice racket. Acting on solid tips, they carried out search operations across the city on September 16, uncovering bogus billing worth a whopping Rs 455 crore.
The scam involved three connected companies: Vasu Multimetals, SVM Multimetals Private Limited, and Ingottastic LLP. These firms grabbed fake Input Tax Credit (ITC) amounting to Rs 69.41 crore. They used this ineligible credit to dodge their GST payments, causing a major hit to government revenue. It’s a classic case of GST fraud that cheats honest businesses and the economy.
After the raids, authorities arrested a father-son team who ran and controlled these companies. The duo now faces charges under the Central GST Act, 2017, and a court has sent them to judicial custody. The investigation continues to dig deeper into the network and hunt for other players in this fake invoice scam.
The CGST Ludhiana team is staying tough on tax evasion. They promise to keep rooting out such frauds to give fair play to genuine taxpayers in Punjab and beyond.
This isn’t the first time they’ve struck gold in the region. Back in July, CGST officers in Ludhiana targeted a similar syndicate in Mandi Gobindgarh, Fatehgarh Sahib district. That operation exposed fake ITC claims in the iron and steel sector through five shell companies.
Here’s how the scammers pulled it off: They snapped up struggling rolling mills as covers to generate and pass on bogus ITC, slipping past GST enforcement checks. Two key operators behind those firms got arrested on July 24. Early estimates show fake bills hit Rs 260 crore, leading to a Rs 47 crore loss in GST revenue.
These back-to-back busts highlight the growing fight against GST scams in Punjab’s industrial hubs. As investigations wrap up, more details on the full extent of these rackets could emerge soon. Stay tuned for updates on this ongoing battle against tax fraud.
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