Punjab tax crackdown unearths Rs 22.53 crore GST evasion; Firm deposits Rs 9.50 crore on the spot
Babushahi Bureau
Chandigarh,September 8, 2026: Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Tuesday said the State Taxation Department has detected an alleged ₹22.53-crore GST evasion involving a Mandi Gobindgarh-based firm, with ₹9.50 crore deposited as SGST during an inspection.
Cheema said the department had initiated proceedings against M/s Jagat Metals Pvt. Ltd. following an intelligence-led investigation into its Input Tax Credit (ITC) claims.
According to the Finance Minister, the firm had allegedly claimed ITC worth around ₹22.53 crore, with the claims linked to suppliers whose GST registrations had already been cancelled by the authorities.
He said further scrutiny indicated that intermediate suppliers in the transaction chain had also availed substantial ITC from cancelled dealers. This, he said, raised questions about the genuineness of the transactions and the actual movement of goods.
₹9.50 Crore Deposited During Inspection
Cheema said the department conducted an inspection at the firm's business premises in Mandi Gobindgarh on September 7. The search continued late into the night, following which the concerned party deposited ₹9.50 crore as SGST in cash.
The Minister described the recovery as an outcome of the department's intelligence-based enforcement mechanism and increasing use of data analytics to detect suspected fraudulent billing and ITC networks.
He said the department was continuing its investigation to establish the full extent of the alleged tax evasion and recover any outstanding amount.
Officials are examining several aspects of the transactions, including the actual receipt and movement of goods, tax invoices, e-way bills, vehicle records, weighment slips, banking transactions and the overall financial trail, Cheema said.
Government Warns Tax Evaders of Strict Action
Cheema said the total suspected tax evasion was approximately ₹22.53 crore, and the department expected the balance amount to be deposited during the ongoing proceedings, subject to the findings of the investigation.
He reiterated the Punjab Government's zero-tolerance policy towards tax evasion and fraudulent ITC transactions, while assuring compliant taxpayers of government support.
The Minister said technology and data-driven investigations would continue to be used to identify bogus billing networks and protect the state's revenue.