Directorate General of GST Intelligence (DGGI) Ludhiana Zonal office in its fight against the menace of fake ITC (Input Tax Credit) is continuing to book the major evaders. In another major success, DGGI has arrested the father son duo Pawan Kumar Goyal and Peeyush Goyal of M/s Sona Castings Pvt. Ltd. in Mandi Gobindgarh. M/s Sona Castings Pvt. Ltd which is engaged in manufacturing of MS Billets, Hot Rolled (HR) Coils and ERW Pipes and Tubes. These two were engaged in wrongful availment and utilisation of ineligible input tax credit (ITC) of Rs. 56.52 crores through bogus billings to the tune of Rs. 314 crores without any receipt of goods. They were also engaged in clandestine clearance of goods without invoices further hampering the government revenue.

During the search operation, digital devices like, CPU, mobile phones and other incriminating documents like hand written kacha (without bill) slips, diaries were seized from the residential and official premises of the key persons. As masterminds they have availed and utilized fraudulent ITC of about ₹56.52 crores without underlying supply of goods through fake billing of ₹314.02 crores in violation of the provisions of CGST Act, 2017 and the Rules made thereunder. During the search, evidences were also found about clandestine removal of finished items having tax implication of 0.80 Cr. Additionally, there was also the stock shortage involving the tax liability of Rs. 0.85 Cr.

This is in line with a series of actions being taken by DGGI Ludhiana to curb the practice of tax evasion through fake billing and clandestine removal of goods without invoices. In the last two weeks, DGGI Ludhiana has arrested 5 individuals in multiples cases of fraudulent ITC passing and availment to the tune of around ₹200 crores in fake billing scams of ₹1250 crores. DGGI Ludhiana is further identifying and focussing on various entities that are involved in the fraudulent activity of bogus billing and clandestinely removal of goods without paying of taxes.

DGGI Ludhiana is actively unearthing the menace of fake billing and other GST-related fraud/evasion. In this regard, any evasion/fraud can be reported to this office via email (DGGSTI.LDZU@GOV.IN), landline (0161-2453892), and official address (51-D, Sarabha Nagar, Ludhiana – 141001)

DGGI DGGI LUDHIANA BOGUS BILLING INPUT TAX CREDIT ITC GST IGST Directorate General Of GST Intelligence