The state GST department, Ludhiana busted a bogus billing network executed by five firms, four of which are based in Ludhiana and one in Fatehgarh Sahib. The five companies, which masterminded the scam, created a network of fake firms and showed sale-purchase transactions running into several crores in the last six months. Department officials said notices have been issued to all firms, asking them to pay tax or face action.
Assistant excise and taxation commissioner (AETC), range 1, Ludhiana V K Garg said, “These companies had been on our radar for quite sometime now and we were waiting for the right opportunity to nail them with proper evidence. After thorough investigations, we found that five companies were running the nexus, in which they claimed tax worth Rs 20 crore. The chain involved around 50 firms, mostly bogus. We have served notices on all firms involved in the scam.” Garg said notices have been served to give them the last opportunity to pay back the tax claimed by them, failing which they will be liable to punitive action. He also said the option of filing an FIR could not be ruled out as their first priority is to recover the exchequer’s money.
Meanwhile, Ludhiana businessman Badish Jindal wrote a letter to chief minister Captain Amarinder Singh alleging widespread corruption in the state GST department. Some officers are forcing businessmen to pay 5% to 10% on the amount of pending refunds to get them released, he alleged. Jindal suggested transfer of officers who have been serving on the same position or in the same range and asked the state government to conduct an investigation to unearth tax refund, scrutiny and GST scams.
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