Ludhiana Businessman Arrested In ₹9 Crore GST Fraud Using Fake Invoices At Maa Steel

Chandigarh: A Ludhiana-based businessman has been arrested for an alleged Goods and Services Tax (GST) fraud amounting to Rs 9 crore, Punjab Finance Minister Harpal Singh Cheema said on Thursday. Cheema said a major operation, conducted by the state Intelligence and Preventive Unit of Ludhiana, led to the arrest of Rohit Gupta, owner of Maa Steel, by the Taxation Department.

"The Taxation Department has unmasked a significant GST fraud where Maa Steel was found issuing fake invoices for coils and strips without any actual supply of goods," he said. This fraudulent network managed to pass on Input Tax Credit exceeding Rs 9 crore to various beneficiaries, causing a direct and substantial loss to the state exchequer.

During the search, the department also discovered glaring discrepancies between the physical stock available and the firm’s official book records. The minister said the investigation is widening in scope. "We are currently investigating several manufacturers of cycle parts and spare parts who are suspected of being part of this scam. These entities are under the scanner for improperly claiming export refunds or benefits through an inverted duty structure," he said.

"Our government remains committed to vigorously combating tax evasion, protecting government revenue, and ensuring a level playing field for every compliant taxpayer in Punjab," he said in a statement. On internal administrative discipline, Finance Minister Cheema said the government has dismissed an Excise and Taxation Inspector under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, for his prolonged unauthorised absence from duty.

Emphasising the government’s stand on discipline, he said: "The Bhagwant Mann government remains resolute that no form of indiscipline will be tolerated under any circumstances. We have already terminated four employees for similar misconduct, and disciplinary proceedings are currently underway against another Excise and Taxation Inspector and one clerk for comparable acts." Reaffirming the government’s commitment to accountability, efficiency, and a disciplined work culture, Cheema said these actions reflect that resolve. "We will maintain a zero-tolerance policy towards tax evasion and any malfeasance by public servants," he added.

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