CHANDIGARH: Ludhiana-based businessman has been arrested for an alleged Goods and Services Tax (GST) fraud amounting to Rs 9 crore, Punjab Finance Minister Harpal Singh Cheema said on Thursday.
Cheema said a major operation, conducted by the state Intelligence and Preventive Unit of Ludhiana, led to the arrest of Rohit Gupta, owner of Maa Steel, by the Taxation Department.
"The Taxation Department has unmasked a significant GST fraud where Maa Steel was found issuing fake invoices for coils and strips without any actual supply of goods, " he said.
This fraudulent network managed to pass on Input Tax Credit exceeding Rs 9 crore to various beneficiaries, causing a direct and substantial loss to the state exchequer.
During the search, the department also discovered glaring discrepancies between the physical stock available and the firm’s official book records.
The minister said the investigation is widening in scope.