In a significant breakthrough, the Punjab Excise and Taxation Department, in collaboration with the Fatehgarh Sahib Police, has apprehended a GST fraudster accused of falsely claiming Input Tax Credit (ITC) amounting to Rs 3.65 crore.
Sharing the details of major development, Punjab Finance, Planning, Excise, and Taxation Minister Harpal Singh Cheema on Sunday disclosed that the accused, identified as Deepak Sharma, son of Surinder Pal Sharma, had been served a show-cause notice by the Deputy Commissioner State Tax, Ludhiana, on January 25, 2023, under section 74 of the Act, confronting him about the ingenuine ITC claimed.
However, despite repeated notices, Sharma neither paid the tax nor provided any response. Consequently, an order was passed by the adjudicating authority on June 13, 2023, under the same Act, demanding a total of Rs 11.75 crore, including Rs 4.45 crore as interest and Rs 3.65 crore as a penalty.
Further investigation by the Tax Investigation Unit (TIU) and Sales Tax Officers revealed that Sharma had submitted a forged GST Registration Certificate to a bank, resulting in the freezing of his account by the bank upon the request of the Sales Tax Officer, Fatehgarh Sahib. A recovery notice of Rs 26 lakhs has been issued to the said bank.
In a coordinated operation, a special task force constituted by the SGST Department, aided by meticulous intelligence, conducted simultaneous raids alongside the Fatehgarh Sahib police at multiple locations associated with the accused. The authorities are in the process of identifying and pursuing all entities involved in this fraud, an FIR has been registered, and further investigations are underway to determine the total extent of the fraud and recover the evaded taxes.
Finance Commissioner (Taxation)-cum-Additional Chief Secretary Vikas Partap emphasized the Department's efforts in utilizing data analytic software to identify and crack down on those involved in generating fake ITC. He assured strict action against such fraudulent activities.
The Finance Minister lauded the collaborative efforts of various agencies and the determination of the Punjab Government to combat GST fraud. He reiterated the Government’s firm stance against tax evasion and warned perpetrators of the full consequences of their actions.
