Bogus Input Tax Credit networks face strict action as Bhagwant Mann Govt intensifies technology-led tax enforcement: Harpal Singh Cheema
Honest taxpayers will always find smooth sailing, but Bhagwant Mann Govt vows zero tolerance on tax evasion: Harpal Singh Cheema
CHANDIGARH; 8th September 2026:
Issuing a stern warning to tax evaders, Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Tuesday disclosed the unearthing of a massive ₹22 crore GST (Goods and Services Tax) evasion racket. He announced that the State Taxation Department’s intelligence-led operation against a Mandi Gobindgarh-based firm has already resulted in a staggering on-the-spot cash recovery of ₹9.50 crore, marking a significant victory for the Bhagwant Mann Government’s technology-driven, zero-tolerance policy against tax fraud.
Finance Minister Harpal Singh Cheema said, “The department has initiated strict proceedings against M/s Jagat Metals Pvt. Ltd. Through meticulous data analysis, our taxation officials discovered that this company had wrongfully claimed Input Tax Credit (ITC) amounting to approximately ₹22.53 crore. We found that these massive claims were directly linked to suppliers whose GST registrations had already been cancelled suo moto by the concerned authorities.”
The Finance Minister further explained that the deeper the department dug, the more apparent it became that the entire supply chain was built like a house of cards. He said, “Our investigation exposed that intermediate suppliers in this transaction chain had themselves availed substantial ITC from cancelled dealers. This raised serious red flags regarding the genuineness of the transactions and indicated that the actual physical movement of goods was highly suspicious.”
Detailing the swift enforcement action, he emphasised that the taxation teams were burning the midnight oil to secure the state’s revenue. He shared, “Acting on these ironclad inputs, our department conducted a rigorous inspection at the firm’s business premises in Mandi Gobindgarh on September 7, 2026. The search continued late into the night. Realizing that the game was up and they were cornered by our evidence, the concerned party deposited ₹9.50 crore as SGST in cash right on the spot.”
The Minister proudly said that this immediate deposit speaks volumes about the sheer effectiveness of Punjab’s intelligence-based enforcement mechanism. He said, “We are increasingly relying on cutting-edge data analytics and technology-driven investigations to separate the wheat from the chaff and identify bogus billing networks early on.”
While highlighting the initial recovery, Harpal Singh Cheema made it clear that the department is leaving no stone unturned to recover the remaining dues. He stated, “The total tax evasion involved is approximately ₹22 crore, and we expect the balance to be deposited during the ongoing proceedings, strictly by the book. To get to the bottom of this network, our teams are currently scrutinizing the actual receipt of goods, the authenticity of tax invoices, corresponding e-way bills, vehicle records, weighment slips, banking transactions, and the complete financial trail.”
Reaffirming the Bhagwant Mann Government’s commitment to safeguarding the state exchequer, the Minister issued a final ultimatum. He said, “The Punjab Government maintains an uncompromising policy of zero tolerance towards tax evasion and fraudulent ITC transactions. Honest and compliant taxpayers will always find smooth sailing and receive our full support. However, those who attempt to pull the wool over our eyes will inevitably have to face the music and face strict action in accordance with the law.”
