Punjab's New Fraud Detection Unit Targets GST Violations

In a decisive move to clamp down on tax violations, Punjab's Finance Minister, Harpal Singh Cheema, unveiled plans to establish a Special Fraud Detection Unit (SFDU) focused on uncovering significant Goods and Services Tax (GST) frauds. The unit, headquartered in Patiala, will streamline investigations and bring consistency in handling complex cases.

According to Cheema, the SFDU is designed to dismantle high-value frauds involving circular trading, benami transactions, and fake invoicing. The unit will have the authority to cancel suspicious GST Identification Numbers (GSTINs), block improper Input Tax Credit (ITC) claims, and recommend legal actions against offenders.

Leveraging cutting-edge technologies like Artificial Intelligence and data analytics, the SFDU will mine data and recognize patterns to detect irregularities in tax returns and goods movements. Designed to protect honest taxpayers, this approach focuses scrutiny on dubious entities, balancing enforcement with taxpayer facilitation.

Staffed by a multidisciplinary team of tax experts, IT professionals, and legal advisors, the SFDU will utilize real-time data, such as e-way bills and RFID analytics, for prompt action against evasion. Cheema emphasized the unit's empowerment under key legal provisions to act as an intelligence-driven enforcement agency.

This initiative reaffirms the government's commitment to maintaining economic integrity by creating a transparent and accountable tax environment. By taking proactive measures, the SFDU aims to stabilize Punjab's economy and foster compliance, reflecting the government's resolve against tax fraud.

(With inputs from agencies.)