Punjab: Rs 30-cr input tax credit scam unearthed, ‘kingpin’ nabbed

The Directorate General of GST Intelligence (DGGI), Chandigarh Zonal Unit, has busted a network allegedly involved in generating fraudulent input tax credit (ITC) through the issuance of invoices without the actual supply of goods.

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The investigation has led to the arrest of the alleged mastermind, Manmohan Singh (from Ludhiana), a DGGI spokesperson said.

The spokesperson said the elaborate scam involved multiple business entities, including M/s JHA and JHA Enterprises (Delhi), M/s Goyal Trading Agency (Delhi), M/s MAA Vaishno Enterprises (Delhi), M/s SS Enterprises (Ludhiana), M/s PC Techno Solutions (Ludhiana) and M/s PMI Smelting Private Limited (Ludhiana).

These firms were found to be primarily issuing fake invoices for zinc products.

Preliminary analysis indicates a widespread network of bogus firms, with the quantum of fraudulent ITC currently estimated at approximately ?30.21 crore. The figure is expected to rise as the investigation progresses.

Investigations revealed that Manmohan Singh was allegedly actively involved in establishing and operating this racket, creating the aforementioned firms to generate and avail the ineligible ITC.

Furthermore, it has been uncovered that Singh, in collusion with other individuals currently under the agency’s scanner, allegedly facilitated banking transactions and arranged cash movements in exchange for commissions to enable these illicit activities.

Given the gravity of the offence, the significant financial fraud involved, and the likelihood of evidence tampering and influencing witnesses, Manmohan Singh has been remanded into judicial custody.