Punjab GST Scam: ₹30-Crore Mastermind Nabbed in Major Crackdown

Cybercrime investigation uncovers digital trail in Punjab GST scam

Punjab, India – In a significant breakthrough, law enforcement authorities in Punjab have arrested the alleged mastermind behind a massive ₹30-crore Goods and Services Tax (GST) scam. The accused is believed to have orchestrated a complex network of fake firms and fraudulent transactions to illegally claim Input Tax Credit (ITC), dealing a serious blow to the state’s revenue system.

What the Scam Was About

According to officials from the Punjab State GST Department and local enforcement agencies, the accused set up over two dozen shell companies across multiple districts. These companies were used to issue fake invoices, creating the illusion of legitimate business transactions.

The objective? To fraudulently claim Input Tax Credit without the actual supply of goods or services, enabling the accused and his associates to pocket crores in tax refunds.

Digital Footprints & Forensic Audits Led to Arrest

Investigators were tipped off by discrepancies in tax returns and a sudden spike in high-volume transactions among newly registered businesses. After months of surveillance, audits, and digital tracking, the department uncovered a trail of evidence—including fake PAN cards, Aadhaar credentials, and bank accounts linked to non-existent addresses.

The mastermind, whose identity is currently being withheld pending further investigation, was arrested after a joint operation between Punjab Police, GST Intelligence, and cybercrime units.

Key Highlights of the Case:

• Over ₹30 crore in fraudulent GST claims identified

• More than 25 fake firms traced to a single mastermind

• Use of forged documents and digital identities

• Arrest made after multi-agency operation and forensic audit

• Additional suspects under investigation

  
  

Impact on Local Businesses and Revenue

This scam has raised red flags across the state’s financial ecosystem. Authorities have promised stricter scrutiny of GST registrations and enhanced digital monitoring to prevent such scams in the future. Businesses are also being urged to verify partners and vendors more rigorously before engaging in high-value transactions.

What’s Next?

The arrested individual is currently in police custody and is expected to face charges under various sections of the GST Act, Indian Penal Code (IPC), and IT laws. Investigations are ongoing, and more arrests are anticipated in the coming weeks.

Conclusion

This case serves as a stark reminder of the evolving nature of white-collar crime in India. As digital fraud continues to grow in complexity, compliance and vigilance are now more important than ever—for both authorities and businesses alike.