Based on specific intelligence, the officers of Central Goods & Services Tax Commissionerate, Ludhiana, conducted multiple search operations at Ludhiana on 19.01.2026 unearthing a massive fake GST invoice scam worth Rs 311 Crores. A major manufacturing company in iron & steel sector was involved in availing bogus GST invoices and utilized ineligible Input Tax Credit (ITC) worth Rs 47.50 Crores to set off their GST liabilities and thus causing serious leakage to government revenue.
Following the search operations, two individuals – a father son duo, who were operating and controlling these firms were arrested under the provisions of Central GST Act, 2017 and sent for judicial custody. The investigation is ongoing to uncover the full extent of the network and identify other entities involved.
The CGST Ludhiana Commissionerate reaffirms its commitment to detecting tax frauds and thus ensuring level playing field for honest taxpayers.