Chandigarh, September 8, 2026 (Yes Punjab News)
Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Tuesday said the State Taxation Department had unearthed alleged GST evasion of around ₹22.53 crore involving a Mandi Gobindgarh-based firm and recovered ₹9.50 crore in cash on the spot.
Cheema said strict proceedings had been initiated against M/s Jagat Metals Pvt. Ltd. following an intelligence-led investigation by the department.
According to the Finance Minister, taxation officials identified wrongful claims of Input Tax Credit (ITC) amounting to approximately ₹22.53 crore through detailed analysis of available data. The claims were allegedly linked to suppliers whose GST registrations had already been cancelled suo motu by the authorities.
Cheema said further scrutiny revealed that intermediate suppliers in the transaction chain had themselves availed substantial ITC from cancelled dealers. This, he said, raised serious questions over the genuineness of the transactions and indicated that the actual movement of goods was suspicious.
Acting on the intelligence inputs, taxation officials conducted an inspection at the firm’s business premises in Mandi Gobindgarh on September 7. The search continued late into the night, following which the concerned party deposited ₹9.50 crore as State GST (SGST) in cash, Cheema said.
The Minister described the recovery as an indication of the effectiveness of the department’s intelligence-based enforcement mechanism. He said the government was increasingly using data analytics and technology-driven investigations to identify suspected bogus billing and fraudulent ITC networks.
Cheema said the department was continuing its investigation to recover the remaining amount. “The total tax evasion involved is approximately ₹22 crore, and we expect the balance to be deposited during the ongoing proceedings, strictly by the book,” he said.
The department is examining the actual receipt of goods, authenticity of tax invoices, corresponding e-way bills, vehicle records, weighment slips, banking transactions and the complete financial trail as part of the ongoing proceedings.
Reiterating the Punjab Government’s policy on tax compliance, Cheema said there would be zero tolerance for tax evasion and fraudulent ITC transactions.
“Honest and compliant taxpayers will always find smooth sailing and receive our full support. However, those who attempt to pull the wool over our eyes will inevitably have to face the music and face strict action in accordance with the law,” he said.
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