Punjab Newsline | Chandigarh
Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Tuesday announced the detection of a major GST evasion racket involving approximately ₹22 crore. The State Taxation Department has already recovered ₹9.50 crore in SGST in cash from a Mandi Gobindgarh-based firm during an intelligence-led enforcement operation.
Cheema said the department has initiated strict proceedings against M/s Jagat Metals Pvt. Ltd. after its officials detected irregularities through detailed data analysis. The company had allegedly claimed Input Tax Credit (ITC) worth around ₹22.53 crore through transactions linked to suppliers whose GST registrations had been cancelled suo motu.
According to the minister, the investigation also revealed suspicious transactions further down the supply chain. Intermediate suppliers had allegedly availed substantial ITC from cancelled dealers, raising questions over the genuineness of the transactions and the actual physical movement of goods.
Acting on the intelligence inputs, taxation officials conducted a detailed inspection at the firm's premises in Mandi Gobindgarh on September 7, 2026. The search continued until late at night, following which the concerned party deposited ₹9.50 crore as SGST in cash, Cheema said.
Minister said the recovery demonstrated the effectiveness of Punjab's intelligence-based tax enforcement mechanism. He added that the department is increasingly using data analytics and technology-driven investigations to identify suspicious billing networks and detect fraudulent ITC claims.
Cheema said the department is continuing its investigation to recover the remaining amount. Officials are examining the actual receipt and movement of goods, tax invoices, e-way bills, vehicle records, weighment slips, banking transactions and the complete financial trail associated with the transactions.
Minister said the total tax evasion in the case is estimated at around ₹22 crore and expressed confidence that the remaining dues would be deposited during the ongoing proceedings.
Reiterating the Bhagwant Mann government's zero-tolerance policy towards tax evasion and fraudulent ITC transactions, Cheema warned that those involved in tax fraud would face strict action in accordance with the law. He also assured honest and compliant taxpayers of the government's continued support.
