The Central GST (CGST) Commissionerate, Ludhiana, has unearthed a fake billing scam worth ₹29.43 crore in the iron and steel sector, dealing another blow to tax evasion rackets in Punjab’s industrial hub.

The investigation revealed that a bogus firm based in Mandi Gobindgarh (District Fatehgarh Sahib) had been issuing and circulating fraudulent GST invoices to the tune of nearly ₹30 crore. This elaborate operation allowed the accused to evade more than ₹5.29 crore in Goods and Services Tax (GST).

According to department, the fake firm also fabricated e-way bills and supporting documents to mask its fraudulent activity and avoid detection by enforcement authorities. Following the probe, the proprietor of the firm was arrested on September 11, 2025, and has since been remanded to judicial custody. 

The case highlights how fake firms are being used to manipulate billing in Punjab’s industrial sectors, especially in iron and steel. In its press statement, the CGST Ludhiana Commissionerate reiterated its commitment to detecting tax frauds and safeguarding honest taxpayers.

GST Fraud CGST Ludhiana Fake GST Firm Iron And Steel Sector Mandi Gobindgarh 29 43 Crore Scam Tax Evasion Punjab News