Punjab State Taxation Department Arrests Mastermind in ₹55.35 Crore Fake Billing Racket: Harpal Singh Cheema

Fraudulent Input Tax Credit of ₹8.35 Crore Passed Off to Exporters: Harpal Singh Cheema*

*Further Investigations Underway to Expose the Complete Network of Beneficiaries: Harpal Singh Cheema*

*Finance Minister Advocate Harpal Singh Cheema Reaffirms Zero-Tolerance Against Tax Evasion*

Chandigarh, July 9

The Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema on Thursday announced that the Punjab State Taxation Department has apprehended the proprietor of a Jalandhar-based firm for orchestrating a ₹55.35 crore fake billing racket. He said, “This significant enforcement action successfully halted the fraudulent passage of Input Tax Credit (ITC) worth approximately ₹8.35 crore, which was causing substantial losses to the state exchequer through wrongful Integrated GST (IGST) refund claims”.

Giving the details of the intelligence-based operation in a press communique issued here, Excise and Taxation Minister Harpal Singh Cheema said, “The State GST Department has arrested Bhupinder Sharma, the proprietor of M/s Ramsons Corporation bearing GSTIN 03BFDPB3574F1ZZ in Jalandhar, under Section 69 of the Punjab GST Act, 2017. Our preliminary investigation revealed that this firm was deeply engaged in a large-scale fake invoicing and fraudulent Input Tax Credit racket by issuing GST invoices without any actual supply of goods.”

Shedding light on the financial scale of the fraud, Cheema said, “The firm carried out bogus billing of approximately ₹55.35 crore, which directly resulted in the wrongful availment and passing of fake ITC amounting to nearly ₹8.35 crore. This fraudulently passed ITC was ultimately utilised by certain manufacturing firms for claiming refunds of Integrated GST paid on exports, thereby causing a substantial and direct loss to the government exchequer.”

Detailing the swift enforcement action, the Finance Minister said, “Based on the concrete evidence gathered during the investigation, a dedicated team of the State Tax Department in Jalandhar arrested the accused on July 9, 2026. Let it be known that the offences involved in this racket are cognizable and non-bailable under the strict provisions of the Punjab GST Act, 2017.” Elaborating on the future course of the probe, Cheema said, “The investigation is continuing aggressively to identify the complete network of beneficiaries, trace the exact flow of this fraudulent ITC, and ascertain the total amount of tax evasion. Appropriate legal action shall be taken against all persons found involved in this racket.”

Reiterating the Punjab Government’s uncompromising stance on tax fraud, Excise and Taxation Minister Harpal said, “The state Government is firmly committed to ensuring transparency and protecting government revenue. Strict action will continue against every individual or entity involved in fake invoicing, bogus Input Tax Credit, and tax fraud. Such illegal activities not only cause revenue loss but also create an unfair business environment for honest taxpayers.”vThe Finance Minister emphasised the department’s modernized approach to enforcement, adding, “The State Tax Department has been strictly directed to intensify enforcement and take the strongest possible legal action against tax evaders. We remain steadfastly committed to safeguarding public revenue through intelligence-based enforcement, advanced data analytics, and coordinated investigations against all tax evasion and fraudulent ITC networks.”