In a significant crackdown on GST fraud, the Directorate General of GST Intelligence (DGGI) has arrested Manoj Gupta, the mastermind behind a large-scale fraudulent billing network, based in Mandi Gobindgarh, Punjab. Gupta, a prominent businessman, is accused of orchestrating bogus transactions that inflated Input Tax Credit (ITC) claims by a staggering Rs47.91 crore.
Gupta, who operates multiple businesses in the region, used four scrap trading firms to execute the scam. Two of these entities—Balak Enterprises and Nath Enterprises—were established as dummy companies, registered under fictitious names. The other two companies, Pammik Enterprises and Pammik Importer, were run directly by Gupta. These companies reportedly issued and received invoices for non-existent goods, in violation of the CGST Act, 2017.
On December 20, DGGI officials raided Gupta’s business and residential premises, uncovering critical evidence, including electronic devices and incriminating documents. In the face of the evidence, Gupta confessed to his involvement during questioning and was arrested on December 21. He is now in judicial custody.
Further investigation revealed Gupta’s long history of fraudulent activities. He had previously come under the radar of the Punjab VAT department and the Vigilance Bureau’s Economic Offence Wing, which had investigated him for similar violations under VAT laws.
The DGGI has stressed the importance of tackling fake billing networks, emphasizing their damaging impact on the country’s tax system. The operation is part of a broader initiative to eliminate fraudulent practices and protect the integrity of the GST framework.
