Punjab Newsline | Chandigarh
Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema on Thursday announced that the State GST Department has arrested the proprietor of a Jalandhar-based firm for allegedly running a ₹55.35 crore fake billing racket, preventing the fraudulent transfer of Input Tax Credit (ITC) worth around ₹8.35 crore.
According to the minister, the intelligence-based operation stopped fake ITC from being used to claim wrongful Integrated GST (IGST) refunds on exports, averting a significant loss to the state exchequer.
Cheema said Bhupinder Sharma, proprietor of M/s Ramsons Corporation (GSTIN: 03BFDPB3574F1ZZ) in Jalandhar, was arrested under Section 69 of the Punjab GST Act, 2017. Preliminary investigations revealed that the firm allegedly issued GST invoices without any actual supply of goods, enabling fraudulent claims of Input Tax Credit.
The minister said the company generated bogus invoices worth nearly ₹55.35 crore, resulting in the wrongful availment and transfer of approximately ₹8.35 crore in fake ITC. The fraudulently passed credit was allegedly used by certain manufacturing firms to claim IGST refunds on exports, causing substantial revenue losses.
Based on evidence collected during the investigation, a dedicated team of the State Tax Department arrested the accused on July 9, 2026. Cheema noted that the offences involved are cognizable and non-bailable under the Punjab GST Act.
He added that the investigation is continuing to identify all beneficiaries, trace the movement of the fraudulent ITC, determine the total tax evasion, and initiate legal action against everyone found involved in the racket.
Reaffirming the Punjab Government's zero-tolerance policy against tax fraud, Cheema said strict action would continue against individuals and entities engaged in fake invoicing, bogus ITC claims, and tax evasion. He stressed that such illegal practices not only deprive the government of revenue but also create an unfair business environment for honest taxpayers.
Finance Minister further said the State Tax Department has been instructed to intensify enforcement through intelligence-based operations, advanced data analytics, and coordinated investigations to dismantle tax evasion and fraudulent ITC networks across the state.
