6 Mandi Gobindgarh firms in dock on illegal sale of products worth Rs 647 cr

The Directorate General of GST Intelligence (DGGI), Ludhiana, has found that six business entities of Mandi Gobindgarh in Fatehgarh Sahib district were involved in the illegal sale of products worth Rs 647.4 crore, leading to the GST evasion of Rs 116.5 crore.

The names of the business entities are M/s Bharat Steel Industry, M/s Ramji Concast, M/s AKM Alloys, M/s KTB Alloys, M/s Shree Salasar Balaji Steel Tubes and M/s Shree Salasar Steel Tubes & Co. They were involved in the manufacturing of billets and trading of pipes.

The investigation by the DGGI Ludhiana unearthed and seized incriminating evidence against these entities. These were further corroborated in the voluntary statements made and admitted by partners and employees of these entities. The companies were reportedly involved in the clandestine removal of goods worth Rs 388.8 crore, leading to the GST evasion of Rs 69.8 crore. They were also found to have been involved in fake invoicing of Rs 258.5 crore, leading to the GST evasion of Rs 46.5 crore through fraudulent availing and utilisation of Fake Input Tax Credit from non-existent and fictitious business entities.

On May 2, the DGGI, Ludhiana, placed under arrest the three men who largely owned and controlled the above-mentioned business entities, for their acts leading to the GST evasion of Rs116.5 crore. The three arrested men have been sent to judicial custody.

The DGGI is the Government of India’s premier intelligence and investigating agency for the GST tax evasion, functioning under the Ministry of Finance. In order to tackle the menace of the GST evasion, the DGGI develops intelligence, especially in new areas of tax evasion, through advanced tools for data analytics, besides using its intelligence network across the country to collect such information.

Punjab