On Thursday, the Punjab Excise and Taxation Department have claimed to have busted a bogus GST billing scam involving ₹ 60 Crore. The proprietor of the Ganpati Motor Store Subhash Chander, located in Khanauri Mandi, has been arrested, who was found to be engaged in the unscrupulous business.
According to the Additional Excise and Taxation Commissioner-cum-Director Investigation, Navdeep Kaur Bhinder, Subhash used to procure fake GST invoices of iron and scrap from Delhi without the physical delivery of goods. In addition, as per the investigation conducted by the department, some of the vehicles used in the transportation of goods were found to be scooters and motorcycles. After following the due process of law and detailed inquiry, the accused has been arrested.
It was reported that a total of 945 vehicles have transported iron and scrap goods from Delhi to Khanauri Mandi. However, after verification, it was found that only 67 vehicles had passed through the toll plaza at Rohtak in Haryana. Further verification by the department of these 67 vehicles revealed that these vehicles had actually not passed through the toll plaza but only fake toll plaza receipts had been generated.
Following this, the investigations found that the accused was creating bogus input tax credit (ITC) running into crore of rupees and further passing on to various dealers of Punjab. ITC is the mechanism of reducing taxes paid on inputs from taxes to be paid on output.
The commissioner said that the department had initiated action against Subhash Chander as per the law and that further investigations into this case were underway. She added that all dealers indulging in bogus billing will be dealt sternly. The department is also planning to launch a strict campaign against dealers/traders who are involved in cases of tax evasion.