Punjab cracks down on suspected GST evasion in steel sector

Spread the news

Chandigarh, June 9

Punjab’s Excise and Taxation Department has detained more than 145 vehicles and seized goods worth around ₹4.35 crore during a major enforcement drive targeting alleged tax evasion in the iron and steel industry, Finance Minister Harpal Singh Cheema said on Tuesday.

The operation was carried out in the industrial hubs of Mandi Gobindgarh and Khanna areas known for their large concentration of iron and steel businesses. According to the minister, the drive was aimed at uncovering bogus billing practices and preventing the movement of goods without proper documentation. Cheema said authorities expect penalties in the case to exceed ₹2.5 crore once investigations are completed.

The latest action follows an earlier enforcement operation conducted on 5 June and involved coordinated efforts by State Investigation and Prevention Units (SIPUs) from Ludhiana, Jalandhar, Shambhu, Patiala and Bathinda.

Officials stopped and inspected more than 145 vehicles carrying iron scrap, steel products and related materials. The seized goods are estimated to weigh over 145 metric tonnes and have a market value of approximately Rs 4.35 crore. The officials further said that several consignments were allegedly transported without valid invoices or e-way bills while some documents presented during inspections were found to be suspicious or unverifiable.

Cheema further said detailed investigations are underway and legal proceedings have already been initiated under the Goods and Services Tax (GST) Act against those suspected of violating tax regulations.

Cheema said the Punjab government remains committed to protecting state revenue and ensuring a level playing field for businesses that comply with tax laws. He added that intelligence-based enforcement operations would continue across the state to strengthen GST compliance and curb tax evasion.

The crackdown is part of a broader effort by the state government to tighten oversight of commercial transactions and prevent revenue losses caused by fraudulent billing and undocumented trade practices.