CGST LUDHIANA UNEARTHS RS. 180 CRORE GST FRAUD INVOLVING MULTIPLE FIRMS; 2 ARRESTS MADE SO FAR

Ludhiana, 12 July: In continuation to the arrest made on 08.07.2025 in connection with a network involved in issuing bogus GST invoices and fraudulently claiming refunds, the Anti-Evasion Wing of CGST Ludhiana has arrested one more person on 11.07.2025. Being the controller and operator of two fake firms, he was found to be a major player in this nexus issuing fake GST invoices and facilitating erroneous refunds causing huge losses to the Government.

So far, the investigation has revealed that the syndicate was operating multiple bogus firms which had issued fake GST invoices involving taxable value of Rs. 1786 crore and passed on fraudulent Input Tax Credit (ITC) of approx. Rs. 180 crore without actual supply of goods or services. These ITC are used further to get GST refunds on inverted duty structure.

One of the firm in this network had fraudulently availed GST refund of Rs. 8.74 crore based on ITC availed from non-existent suppliers. He was earlier arrested on 08.07.2025.
With the two arrests made so far in this case, the investigation is ongoing to uncover the full extent of the network and identify other entities involved.
The CGST Ludhiana Commissionerate reaffirms its commitment to detecting tax frauds and safeguarding Government revenue.