In a significant breakthrough, the Punjab Excise and Taxation Department, in collaboration with the Fatehgarh Sahib police, successfully apprehended a GST fraudster who falsely claimed Rs 3.65 crore in input tax credit ( ITC ).
Punjab’s Finance, Planning, Excise, and Taxation Minister, Harpal Singh Cheema, revealed that a show-cause notice was issued to the suspect, Deepak Sharma, by the Deputy Commissioner, State Tax, Ludhiana, on January 25, 2023. Despite the notice, Sharma neither paid the outstanding tax amount nor provided any response.
Cheema explained that an order, as per the relevant section of the Act, was issued by the adjudicating authority on June 13, 2023, resulting in a total demand of Rs 11.75 crore, which included Rs 4.45 crore in interest and Rs 3.65 crore in penalties. Following an investigation by the Tax Intelligence Unit ( TIU ) and sales tax officers, it was discovered that Deepak had presented a forged GST registration certificate to a bank. Consequently, his bank account was frozen, and a recovery notice for Rs 26 lakh was dispatched to the concerned bank.
The Finance Minister highlighted the coordinated efforts of a special task force formed by the State Goods and Services Tax Department ( SGST ), which, in conjunction with the Fatehgarh Sahib police, conducted simultaneous raids at various locations associated with the suspect. An FIR was filed, and ongoing investigations aim to ascertain the full extent of the fraud and recover the evaded tax.
Meanwhile, Finance Commissioner Taxation-cum-Additional Chief Secretary Vikas Partap mentioned that the department had developed a data analytic software to identify individuals engaging in fraudulent ITC activities. Strict actions are being taken against those found to be generating fake ITC, as part of the department’s commitment to combat tax evasion.
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