Continuing with its endeavor to tackle the menace of fake billing which is a socio-economic challenge, Directorate General of GST Intelligence (DGGI) Ludhiana has busted another module in Amritsar. This module was involved in defrauding the society through fake billing of ₹79.4 crores leading to a loss of government revenue of ₹12.1 crores. Three individuals namely Rajinder Singh, Manmohan Singh and Rajinder Pal Singh were arrested on 28January 2025 and sent to judicial custody by the First Class Judicial Magistrate in Ludhiana.

A team of 30 officers from Ludhiana and Amritsar searched 12 business and residential premises on 09 January 2025. Following the search, many incriminating evidence and documents were recovered. It was obtained that many of these business firms were managed by dummyindividuals. They have used fraudulent documents to obtain GST registration and submitted false information with the authorities.

On the basis of further information and with the progress in investigation, on 20 January, 2025 another team of 40 officers from Ludhiana and Amritsar searched 16 business and residential premises in Amritsar. Following the search, GST registration of 22 business firms were cancelled and the accumulated credit of 97 lakhs by them through fake billing has been blocked.

All the three individuals named above were the key person and mastermind behind this module. They were creating multiple business firms and getting them registered with GST. Further, they used to take fake bills from various suppliers across states, like UP, Delhi, Odisha, West Bengal, Haryana, Rajasthan, and others. They were also acting as insurance point of sale persons (POSPs). Wherein, they used to sell insurance policies for many insurance brokers based in Gurugram and Delhi. The commission so collected on the sale of these policies were liable for GST payment. To evade GST on these commissions, they have created a modus of fake billing. Till now, they have received fake billing of ₹79.4 crores and have evaded GST payment of ₹12.1 crores. They have been arrested and sent to judicial custody. Further investigation is underway.

The Directorate General of GST Intelligence (DGGI) is a premier agency of the Government of India working towards checking and mitigating the evasion and frauds in GST. DGGI coordinates with other central and state agencies in matters related to evasion, frauds and money laundering. DGGI, Ludhiana Zonal Unit in its endeavor to check the modules of fake billing in various sector has in recent months detected fake billing of more than ₹1500 crores and arrested 9 individuals across Punjab, in Ludhiana, Mandi Gobindgarh and Amritsar.

Fake billing schemes like these not only undermine the tax system but also create an unfair playing field for honest businesses. The DGGI is urging citizens and business owners to stay vigilant and report any suspicious activity.

For those who suspect fraudulent activity or want to report fake billing schemes, the DGGI Ludhiana can be contacted atdggsti.ldzu@gov.in.

As the fight against GST fraud intensifies, it’s clear that the DGGI is determined to track down and punish those who try to cheat the system, ensuring that hard-earned tax money is used for the benefit of the nation.

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