Cracking Down: DGGI Uncovers Massive GST Evasion in Punjab and UP

In a significant breakthrough, the Directorate General of GST Intelligence (DGGI) has uncovered a major GST evasion case involving three business entities in Mandi Gobindgarh, Punjab. Collectively, these companies—M/s Aar Dee Enterprises, M/s Aashi Steel Industries, and M/s Abhi Alloys—allegedly evaded Rs 13.41 crores in taxes, marking illegal sales of Rs 87.91 crores.

This elaborate fraud was discovered through a coordinated effort between DGGI offices in Lucknow, UP, and Ludhiana, Punjab. The investigation revealed that two men, Raman Kumar Chaurasia and Devinder Singh, utilized fake billing from accomplices in Lucknow to facilitate illicit procurement of iron and steel products.

Authorities found that 37 fraudulent business entities based in Lucknow supplied fake Input Tax Credit (ITC) to their counterparts in Punjab. As a result, the Punjab companies obtained fraudulent ITC through fictitious invoices from 78 entities, contributing significantly to tax evasion.

The crackdown led DGGI Ludhiana to arrest Chaurasia and Singh as of May 15, 2025. These arrests followed the seizure of compelling evidence and voluntary confessions from the suspects. The operation underscores DGGI's ongoing efforts to eliminate fake billing practices that undermine the tax system's credibility.

Such fraudulent activities harm government revenue, compromise public services, and disrupt economic stability. They also create unfair competition and may exacerbate inflationary trends. Ensuring strict enforcement against tax evasion is vital to maintaining a healthy economic environment and upholding the integrity of the GST regime.

The DGGI, under India's Ministry of Finance, employs advanced data analytics and a robust intelligence network to combat tax evasion. By promoting awareness and rigorous monitoring, it aims to protect public trust and ensure equitable tax compliance.

(With inputs from agencies.)