Fatehgarh Sahib: Plaint lodged against firm for fake Rs 26 cr bills

The Excise and Taxation Department has lodged a complaint with the Fatehgarh Sahib police against the owner of a firm here for allegedly issuing fake e-way bills of Rs 26.12 crore without making any purchase.

Showing such transactions in their books, firms claim input tax credit, a GST mechanism allowing businesses to claim credit for taxes paid on raw material against their output tax liability, ensuring tax is paid only on value addition.

Following the move, the GST registration of Mehak Enterprises has been cancelled.

Jitpal Kaur, Assistant Commissioner, Fatehgarh Sahib said a special campaign had been launched to prevent tax evasion.

She said the firm, after obtaining the GST number, issued fake e-way bills of Rs 26.12 crore without making any purchase. She said the firm uploaded a fake rent bill while applying for GST registration.