CGST Ludhiana busts Rs 260 cr fake billing racket in iron and steel sector, 2 arrested

Acting on specific intelligence, officers of the CGST Ludhiana Commissionerate conducted multiple search operations in Mandi Gobindgarh, District Fatehgarh Sahib, Punjab, unearthing a syndicate involved in availing and passing on fake Input Tax Credit (ITC) in the iron and steel sector through five firms.

According to an official statement, the search operations revealed a modus operandi involving the acquisition of debt-ridden rolling mills, which were used as fronts by the perpetrators to avail and pass on fake ITC, thereby evading scrutiny by GST enforcement agencies.

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Following the searches, two individuals operating and controlling these firms were arrested on 24 July 2025. A preliminary assessment indicates that bogus bills worth Rs 260 crore were generated, resulting in an estimated GST loss of Rs 47 crore to the exchequer.

With two arrests made so far, the investigation is ongoing to uncover the full extent of the network and identify other entities involved. “The CGST Ludhiana Commissionerate reiterates its commitment to detecting tax frauds and ensuring a level playing field for honest taxpayers,” according to the statement.