The Punjab GST Fraud Case has come to light after the State GST Department arrested the proprietor of a Jalandhar-based firm for allegedly operating a ₹55.35 crore fake billing racket. Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema announced that the action prevented the fraudulent transfer of around ₹8.35 crore in Input Tax Credit (ITC).
According to the minister, the intelligence-based operation helped stop the misuse of fake ITC that could have been used to claim wrongful Integrated GST (IGST) refunds on exports, protecting government revenue.
Jalandhar Firm Accused of Issuing Fake GST Invoices
Harpal Singh Cheema said Bhupinder Sharma, proprietor of M/s Ramsons Corporation (GSTIN: 03BFDPB3574F1ZZ), Jalandhar, was arrested under Section 69 of the Punjab GST Act, 2017.
The preliminary investigation in the Punjab GST Fraud Case revealed that the firm allegedly issued GST invoices without any actual supply of goods. These fake invoices were reportedly used to generate and transfer fraudulent Input Tax Credit to other businesses.
The Mann Government’s crackdown on tax fraud is protecting honest taxpayers and strengthening Punjab’s economy.
Finance Minister @HarpalCheemaMLA announced that the Punjab GST Department has unearthed a fake billing racket involving transactions worth ₹55.35 crore, arrested a… pic.twitter.com/9uBmJFP70k
— AAP Punjab (@AAPPunjab) July 10, 2026
Officials stated that the firm generated bogus invoices worth nearly ₹55.35 crore, leading to the wrongful availment and transfer of approximately ₹8.35 crore in fake ITC.
Fake ITC Allegedly Used for Export Refund Claims
The investigation found that the fraudulently transferred ITC was allegedly used by certain manufacturing companies to claim IGST refunds on exports. Authorities said such fraudulent activities could result in major financial losses for the state exchequer.
A dedicated team of the State Tax Department arrested the accused on July 9, 2026, after collecting evidence during the investigation. The offences involved under the Punjab GST Act are cognizable and non-bailable.
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Investigation Underway to Trace Other Beneficiaries
The Punjab GST Fraud Case investigation is continuing as authorities work to identify all beneficiaries linked to the alleged fake billing network. Officials are tracing the movement of fraudulent ITC, calculating the total tax evasion, and preparing further legal action against those found involved.
Harpal Singh Cheema said strict action would continue against individuals and firms involved in fake invoicing, bogus ITC claims, and tax evasion.
Punjab Government Intensifies Crackdown on Tax Evasion
Reaffirming the government’s zero-tolerance approach towards tax fraud, Cheema said illegal practices not only impact government revenue but also create unfair competition for honest taxpayers.
The department has been instructed to strengthen enforcement through intelligence-based operations, advanced data analytics, and coordinated investigations to identify and dismantle fraudulent ITC networks across Punjab.