On suspicion of bogus billing, the state GST department, Ludhiana, conducted inspections at four firms that are into the edible oil business. Three firms are located in Ludhiana (two in Kesarganj Mandi and one in Sham Nagar) and the fourth is in Khanna. During the inspection, the department seized more than Rs 41 lakh cash from two of the firms along with a huge cache of incriminating documents, which it is assessing for further investigation.
Tejbir Singh Sidhu, deputy commissioner of the state GST in Ludhiana, said, “On Tuesday, four inspections were conducted on edible oil companies in pursuance to an earlier checks in which we got some leads of bogus billing being done by some firms that took inadmissible tax credit to nullify their tax liability. Three of the inspections were held at Ludhiana-based firms while the fourth was in Khanna. So far, the action has resulted in the recovery of over Rs 41 lakh cash from two firms.”
Hoping to get further leads, he said, “We will check the front and back chain of supplies to rule out bogus billing nexus and also ensure that the legitimate tax reaches the government treasury. In case the quantum of tax and penalties involved in any case exceeds more than Rs 5 crore, arrests will be made. Our teams are working round the clock to process the data gathered.”