JALANDHAR – In a significant crackdown on organized tax evasion, the Punjab State Tax Department has arrested a Jalandhar-based businessman for orchestrating a massive fake billing scam involving transactions worth over Rs 55.35 crore.
Punjab Finance, Excise, and Taxation Minister, Advocate Harpal Singh Cheema, announced the arrest on Thursday, identifying the accused as Bhupinder Sharma, the owner of M/s Ramsons Corporation (GSTIN 03BFDPB3574F1ZZ). The arrest was executed on July 9, 2026, by a specialized team of the State Tax Department.
The Mechanics of the Fraud
According to the investigation, the firm operated as a front to generate fraudulent invoices without the actual supply of any goods. By creating these paper transactions, the firm was able to generate and pass on fake Input Tax Credit (ITC) amounting to approximately Rs 8.35 crore.
Minister Cheema explained that this illicit ITC was strategically utilized by various manufacturing firms to fraudulently claim refunds of Integrated GST (IGST) paid on exports. This systemic manipulation resulted in direct, substantial losses to the government exchequer.
Stringent Legal Action
The arrest was made under Section 69 of the Punjab GST Act, 2017. Officials confirmed that the offenses associated with this level of tax fraud are non-bailable, highlighting the severity with which the state is treating the case.
“The investigation is currently in full swing,” Minister Cheema stated. “We are working to identify the entire network of collaborators, trace the exact flow of this fake ITC, and ascertain the total cumulative amount of tax evasion. Appropriate legal action will be initiated against every individual or entity found involved.”
Commitment to Fiscal Integrity
Reiterating the Punjab government’s “zero-tolerance” policy toward tax fraud, the Finance Minister emphasized that such illegal activities undermine the economy and create an unfair, unhealthy environment for honest taxpayers.
“Our department is now utilizing intelligence-led enforcement, coupled with advanced data analytics, to safeguard government revenue,” said Cheema. “We are strictly directed to enhance vigilance across the state to ensure that tax evaders are held accountable and the integrity of the taxation system is preserved.”
The arrest serves as a stern warning to entities engaging in bogus invoicing and input tax credit fraud, as the state continues its intensified drive to curb financial malpractices.
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