Big GST Scam Exposed: CGST Ludhiana Unearths ₹8.8 Cr Evasion, Partner Arrested

December 24, 2025

LUDHIANA: Continuing its crackdown on fraudulent GST invoicing, the Central Goods and Services Tax (CGST) Ludhiana Commissionerate has arrested the partner of a firm based in Derabassi, Punjab, for ₹8.8 crore in GST evasion. This action is considered a significant part of the department’s efforts to curb tax evasion and protect government revenues.

The firm, which operates as a metal scrap aggregator, is accused of fraudulently obtaining ineligible input tax credit (ITC) and using it to offset GST liability. According to officials, this misuse of ITC resulted in significant losses to the government treasury.

Searches Conducted at Multiple Locations

Prior to the arrest, CGST officials conducted searches at several locations linked to the firm on December 23rd. During this period, documents and records were examined to uncover the modus operandi of tax evasion through fake invoices.

Investigation ongoing, other entities also on radar

The department stated that the investigation into the matter is still ongoing and efforts are underway to uncover the entire tax evasion network and identify other firms and individuals involved. Further action is possible as the investigation progresses.

The CGST Ludhiana Commissionerate reiterated its full commitment to detecting and preventing GST fraud to ensure a equitable and fair environment for honest taxpayers.