Acting on specific intelligence, officers of the Central Goods and Services Tax (CGST) Commissionerate, Ludhiana, conducted multiple search operations in Ludhiana on January 19, 2026, unearthing a massive fake GST invoice scam worth ₹311 crore.
A major manufacturing company in the iron and steel sector was found involved in availing bogus GST invoices and utilising ineligible Input Tax Credit (ITC) amounting to ₹47.50 crore to offset its GST liabilities, thereby causing a significant loss to government revenue.
Following the search operations, two individuals — a father-son duo who were operating and controlling the firms involved — were arrested under the provisions of the Central GST Act, 2017, and have been remanded to judicial custody.
The investigation is on to uncover the full extent of the network and to identify other entities involved in the scam.
Meanwhile, the CGST Ludhiana Commissionerate reaffirmed its commitment to detecting tax fraud and ensuring a level playing field for honest taxpayers.