In January of this year, the Punjab GST Department arrested four individuals in connection with an alleged fake billing case.
Subsequently, the department has adjudicated 12 firms and imposed a penalty of Rs 50.19 crore against them.
The department has initiated proceedings to recover the penalty amount from these firms under Section 122 of the GST Act.
It's mentioned that the punishment for fraud, which is a separate legal matter, is covered under Section 132 of the GST Act and will be pursued separately through the court.
The companies facing penalties and the respective penalty amounts are listed as follows:
- Dashmesh Trading: Rs 13.14 crore
- PB Interior Decor: Rs 7.44 crore
- PK Trading: Rs 3.45 crore
- Guru Har Rai Trading: Rs 5.24 crore
- Gagan Trading: Rs 6.37 crore
- North Vogue: Rs 2.23 crore
- Shiv Shakti Enterprises: Rs 3.20 crore
- Brij Trading Company: Rs 3.54 crore
- Sri Balaji Trading Company: Rs 1.69 crore
- Krish Enterprises: Rs 1.71 crore
- Pankaj Scrap Company: Rs 1.35 crore
- Sri Radhey Krishan Enterprises: Rs 0.83 crore
The officials claim that the owners of these companies generated fake bills without supplying any goods, which resulted in losses to the state exchequer.
The penalty imposed is equal to the tax amount, and it will be collected in cash rather than being adjusted through Input Tax Credit (ITC).
The officials mention that only 12 firms have been penalized so far, and they plan to penalize all companies involved in the billing chain. This suggests that more companies may face penalties in the future.
Additionally, a gold jeweler from Lal Bazaar was penalized in connection with this case, as most of the 12 firms had made transactions into his bank account.
The actions were taken on the orders of Additional Commissioner Jeevan Jot Kaur, division in charge Shaleen Ahluwalia, and ACST of Jalandhar-2 Rajmandeep Kaur.