Chandigarh — The Punjab government has intensified its crackdown on tax evasion and fraudulent Input Tax Credit (ITC) claims, with enforcement teams uncovering an alleged tax evasion network involving approximately ₹22.53 crore and recovering ₹9.50 crore in cash during the ongoing proceedings, Finance Minister Harpal Singh Cheema said.
Cheema said the action was part of the Bhagwant Mann government’s broader effort to strengthen tax compliance through technology-driven enforcement and identify suspicious transactions and bogus ITC networks at an early stage.
According to the minister, the department is continuing its investigation to establish the complete extent of the alleged evasion and recover the remaining dues. Officials are examining a wide range of records to determine whether the transactions represented genuine movement of goods or were part of a fraudulent billing network.
The scrutiny includes verification of the actual receipt and movement of goods, authenticity of tax invoices, e-way bills, vehicle records and weighment slips. Investigators are also examining banking transactions and other financial records to establish the complete money trail.
Cheema said the government would pursue the matter strictly within the framework of the law and would make every effort to recover the outstanding amount identified during the investigation.
“The total tax evasion involved is approximately ₹22 crore, and we expect the balance to be deposited during the ongoing proceedings,” Cheema said, stressing that the department was following the documentary and financial trail to get to the bottom of the alleged network.
The minister said the government’s approach was aimed not merely at recovering revenue after tax evasion had occurred but also at using technology and data analysis to detect suspicious networks before they could expand.
The crackdown assumes significance as fraudulent ITC claims and fake billing arrangements can potentially result in substantial revenue losses to the state exchequer. By cross-checking invoices with e-way bills, vehicle movements, weighment records, banking transactions and other available data, the tax authorities are seeking to distinguish genuine commercial activity from transactions allegedly created only on paper.
Cheema reiterated that the government would maintain a policy of zero tolerance towards tax evasion and fraudulent ITC transactions. At the same time, he sought to reassure businesses that comply with tax laws that they would not face unnecessary hurdles.
“Honest and compliant taxpayers will always find smooth sailing and receive our full support,” the minister said, while warning those involved in tax evasion and fraudulent transactions that strict action would follow in accordance with the law.
The Punjab government’s latest enforcement action reflects its attempt to increase revenue collection without placing an additional burden on compliant taxpayers. The emphasis is increasingly being placed on technology, data verification and financial-trail analysis to identify irregularities and recover public revenue.
With the investigation still underway, the final extent of the alleged tax evasion and the amount ultimately recovered will depend on the outcome of the ongoing verification and legal proceedings.
