Ludhiana-based operator accused of supplying Rs 100-crore fake GST bills

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The Hush Post | 13:27 | 4-minute read

A Ludhiana-based operator is accused of supplying fake GST bills worth Rs 100 crore to at least 100 companies.

This operator is working out of a single room office on city’s Gill Road. A report said that he is suspected to have supplied RS 100-crore fake GST bills to about 100 companies.

The report said the firm issued bills for big sums despite making only negligible purchases. The Punjab Excise and Taxation Department has initiated an investigation into this matter. The department suspects it to be a shell company floated to get input tax credit by selling fake GS) bills.

The company that is registered as an iron and steel trade is situated in a shop near Janta Nagar Chowk. The department suspects it sold the fake bills to companies in Ludhiana. These are to claim input tax credit (ITC) from the Government of India, the report said.

Department issues notice to 70 companies to which such bills were issued

Assistant Excise and Tax Commissioner Vijay Garg reportedly said that the department has issued notices to over 70 such companies. The department has sent notices to the companies to which such bills were issued, Garg reportedly said.

The report said quoting the trade sources that the firm may have sold fake bills to about 200 companies.

When The Tribune newspaper contacted the owner of the suspect company, he denied it was a shell company. The owner insisted his business was legitimate and he was into trading of iron. He claimed that the department officials were framing him.

But official sources said the company had made “negligible purchases” of hardware and certain electrical goods. They said there was a mismatch of purchases compared to the shown sales. The department suspects the company was selling bills of any item demanded by the “clients”, and not just iron.

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