Punjab ₹866 Cr GST Scam Used Daily Wagers’ IDs

Punjab : In one of the biggest GST frauds uncovered in Punjab, tax authorities have unearthed a scam amounting to ₹866 crore. The perpetrators created dozens of fake firms using the documents of daily wage workers, many of whom were unaware their identities were being misused.

The fraudulent scheme involved middlemen luring poor laborers with the promise of ₹800 per day. In exchange, these individuals were asked to hand over copies of their Aadhaar cards, PAN cards, and photographs. Using this information, the fraudsters registered fake companies under their names, which were then used to claim fake input tax credits (ITC) and issue bogus invoices.

The GST department initiated a statewide probe after unusual billing patterns and inconsistencies were flagged during a routine audit. Upon investigation, it was found that most of these so-called firms had no physical presence, no business activity, and no bank transactions that matched their invoice claims.

Sources say that the racket operated across multiple districts, with shell companies registered in areas such as Ludhiana, Jalandhar, Amritsar, and Bathinda. The fraud was reportedly facilitated by tax professionals and agents, some of whom are now under arrest. Several officials are also under the scanner for potential complicity or negligence. Officials estimate that more than 1,200 fake GST registrations were used in the scam. The tax department has already begun cancelling these registrations and has frozen several bank accounts associated with the fraudulent firms.

Action is also being taken under the GST Act and the Indian Penal Code (IPC) for forgery, impersonation, and cheating. The Enforcement Directorate (ED) may also step in if money laundering charges are established. The case highlights a growing trend where vulnerable sections of society are being exploited for large-scale white-collar crimes. Authorities have now launched awareness campaigns urging people not to share personal documents without understanding their use.

This ₹866 crore GST scam has sent shockwaves through the state’s tax administration and has triggered calls for stricter KYC processes and deeper scrutiny of new firm registrations.