Ludhiana (Punjab) [India], September 18 : Acting on specific intelligence, officers of the Central Goods and Services Tax (CGST) Commissionerate, Ludhiana, conducted multiple search operations in Ludhiana on 16 September and unearthed a massive fake GST invoice racket worth Rs 455 Crore.
Three related firms, namely Vasu Multimetals, SVM Multimetals Private Limited and Ingottastic LLP, were involved in availing bogus invoices and utilised ineligible Input Tax Credit (ITC) worth Rs 69.41 Crores to set off their GST liabilities and thus causing serious leakage to government revenue, the release stated.
Following the search operations, two individuals - a father-son duo, who were operating and controlling these firms, were arrested under the provisions of the Central GST Act, 2017 and sent for judicial custody.
The investigation is ongoing to uncover the full extent of the network and identify other entities involved.
The CGST Ludhiana Commissionerate reaffirms its commitment to detecting tax fraud and thus ensuring a level playing field for honest taxpayers.
Earlier in July, based on specific intelligence, the officers of CGST Ludhiana had conducted multiple search operations in Mandi Gobindgarh, District Fatehgarh Sahib, Punjab, unearthing a syndicate involved in availing and passing on fake Input Tax Credit (ITC) in the iron and steel sector using five firms.
During the search operations, the officers uncovered a modus operandi involving the acquisition of debt-ridden rolling mills, which were used as fronts by scamsters to avail and pass on fake ITC, thereby evading the scrutiny of GST enforcement agencies.
Following the search operations, two individuals who were operating and controlling these firms were arrested on 24.07.2025. As per the preliminary assessment, the quantum of bogus bills stood at a staggering ₹260 crore, resulting in a GST loss of ₹47 crore to the exchequer.