Gst Collections In Punjab Lag Due To Bogus Billing, Msme Forum Calls For Probe
Sep29,2026
| Jagrati Lahar Bureau | Ludhiana
FINANCE MINISTER MAKING FAKE CLAIMS OF HUGE GST COLLECTION IN PUNJAB
WHEREAS IN LAST 4 YEARS THE AVERAGE GST INCREASE IS AS PER NATIONAL
GST INCREASE OF 50.18% AS COMPARED TO NATIONAL OF 50.15%.
FROM 2018-19 TO 2025-26 THE GST COLLECTION OF PUNJAB INCREASED
MERELY 97.77% WHEREAS THE GST COLLECTION OF HARYANA INCREASED
301.82% AND DELHI INCREASED 313.54%.
20000 crore revenue stolen every year by Bogus Billing companies in Punjab.
EVEN AFTER VIGILANCE FIR’S IN ON MANY OFFICERS, CLEAN CHIT GIVEN TO ALL
THE OFFICERS OF STATE GST DEPARTMENT
The World MSME Forum has raised serious questions over Punjab’s GST collection performance and
has demanded an independent investigation into the alleged large-scale bogus billing, fake invoicing,
fraudulent Input Tax Credit (ITC) and revenue leakage in the state.
The World MSME Forum said that the GST collection figures for Punjab, Haryana, Delhi and India
from 2021-22 to 2025-26 present a significant question that the Punjab Government must answer.
While the Punjab Government has repeatedly highlighted the growth in GST collection as an
achievement, the comparative figures show that Punjab’s GST collection growth has remained almost
exactly at the national average, whereas neighbouring Haryana and Delhi have recorded substantially
higher growth.
According to the data compiled by the World MSME Forum, GST collection in Punjab increased
from ₹18,406 crore in 2021-22 to ₹27,642 crore in 2025-26, an increase of ₹9,236 crore or 50.18%.
India’s GST collection increased by 50.15% during the same period. Haryana recorded an increase of
77.68%, while Delhi recorded an increase of 73.88%.
State/India 2021-22 2025-26 Actual Increase Correct % Increase
India ₹14,83,291 crore ₹22,27,096 crore ₹7,43,805 crore 50.15%
Punjab ₹18,406 crore ₹27,642 crore ₹9,236 crore 50.18%
Haryana ₹68,142 crore ₹1,21,080 crore ₹52,938 crore 77.68%
Delhi ₹46,254 crore ₹80,425 crore ₹34,171 crore 73.88%
The Forum said that the above figures show that Punjab’s growth of 50.18% is virtually identical to
India’s 50.15% growth, while Haryana has grown by 77.68% and Delhi by 73.88%. The data supplied
by the Forum therefore raises a serious question about whether Punjab is collecting the full GST
revenue that should be generated by its economic activity. The Forum said this issue requires an
independent forensic investigation rather than merely celebrating the gross collection figures.
The longer-term comparison from 2018-19 to 2025-26 is also significant:
State/India 2018-19 2025-26 Actual Increase Correct % Increase
India ₹11,77,345 crore ₹22,27,096 crore ₹10,49,751 crore 89.16%
Punjab ₹13,977 crore ₹27,642 crore ₹13,665 crore 97.77%
Haryana ₹30,133 crore ₹1,21,080 crore ₹90,947 crore 301.82%
Delhi ₹19,448 crore ₹80,425 crore ₹60,977 crore 313.54%
The World MSME Forum said that these figures do not, by themselves, mathematically establish the
quantum of bogus billing in Punjab. However, the very large disparity in GST growth between Punjab
and neighbouring Haryana and Delhi raises a serious prima-facie question about tax leakage, tax
evasion, fraudulent ITC and the effectiveness of the State GST enforcement mechanism.
The Forum said that if Punjab’s GST collection had grown at a rate comparable with Haryana or
Delhi, the state’s revenue position could have been substantially different. It has therefore demanded a
forensic comparison of GST registrations, e-way bills, e-invoices, ITC chains, actual movement of
goods, banking transactions, income-tax records and the financial trail of suspected firms.
The World MSME Forum has also written to Union Home Minister Shri Amit Shah, seeking an
independent investigation by the Enforcement Directorate (ED) and/or Central Bureau of
Investigation (CBI) to unearth the alleged nexus behind bogus billing in Punjab. The Forum
wants the investigation to establish whether bogus-billing companies, intermediaries and any
persons within the tax administration have operated together, and whether any official
facilitation has taken place.
The Forum has maintained that the comparison with Haryana and Delhi indicates a very large gap in
revenue performance and has alleged that the scale of bogus billing in Punjab could be far greater than
the cases presently detected. The Forum has referred to the possibility of bogus transactions exceeding
the equivalent of 200% of the state’s GST collection when the suspected scale of billing is compared
with the collection performance of neighbouring states. However, the Forum itself has said that the
exact quantum must be established through an independent forensic investigation and should not
simply be assumed from collection comparisons.
The World MSME Forum said that it has repeatedly raised complaints and representations before the
Punjab Government and the Punjab SGST authorities regarding alleged bogus billing, fake firms,
fraudulent ITC and revenue leakage. According to the Forum, despite these continuous complaints,
the SGST Department has not undertaken the comprehensive investigation sought by the Forum into
the allegations.
The Forum said that it is not sufficient for the department to detect individual bogus firms from time
to time. The investigation must establish how such firms are registered, how invoices are generated,
how fake ITC is transferred through multiple entities, how the firms operate bank accounts, whether
there is actual movement of goods, who facilitates the transactions and whether the same persons are
able to establish new firms after earlier registrations are cancelled.
The Forum said that several major GST fraud cases have in fact been detected by central agencies in
Punjab. The Central GST Commissionerate, Ludhiana, reported in September 2025 that it had
unearthed a fake GST invoice racket involving approximately ₹455 crore of invoices and ineligible
ITC of ₹69.41 crore in the iron and steel sector. Two persons were arrested and the investigation was
stated to be continuing.
More recently, an investigation involving the Enforcement Directorate and other agencies in Punjab
uncovered alleged fake GST invoicing and suspicious cash withdrawals involving ₹3,089.57 crore.
Reporting on the case stated that a network of shell companies was allegedly used to generate fake
invoices and pass illegal ITC.
The World MSME Forum said these cases demonstrate that bogus billing and fraudulent ITC are real
and documented problems in Punjab. The Forum's concern is whether the cases detected by central
agencies represent only a portion of the actual network operating in the state.
The Forum also pointed to previous investigations by the Punjab Vigilance Bureau involving the
Excise and Taxation Department and allegations concerning tax evasion, bogus bills and alleged
connivance of officials connected with the Mobile Wing. The Forum has specifically demanded
that the functioning of the Mobile Wing and the role of officials named or investigated in
previous Vigilance cases should be independently examined, without prejudging the guilt or
innocence of any individual.
The World MSME Forum has alleged that Punjab could be losing more than ₹20,000 crore annually
because of bogus billing, fake invoices, fraudulent ITC and associated GST evasion. The Forum has
clarified that this is its estimate/allegation and that the exact amount should be established through a
forensic investigation of GST, banking, income-tax and corporate records.
The Forum said that the purpose of seeking an ED or CBI investigation is not to target honest GST
officers. Rather, an independent investigation is necessary precisely because allegations have been
raised concerning the functioning of the same departmental system that is responsible for detecting
such fraud.
The Forum has demanded that the investigation examine GST registrations of suspected firms,
common directors and proprietors, common addresses, mobile numbers and email IDs, common bank
accounts, e-way bills, e-invoices, actual movement of goods, ITC pass-through, cancellation and re-
registration of GST numbers, banking transactions, income-tax records, property transactions and the
role of intermediaries.
The Forum has also demanded examination of whether persons or firms previously detected for GST
fraud were subsequently able to establish new entities and continue their activities, and whether any
departmental officer or intermediary facilitated such activity.
The World MSME Forum said that bogus billing cannot be allowed to become a parallel business
model while genuine MSMEs are required to comply with increasingly stringent GST requirements.
Honest businesses should not be forced to compete with entities that allegedly operate through fake
invoices and fraudulent ITC.
The Forum said, “Punjab Government is repeatedly highlighting GST collection growth, but the
comparative figures require a much deeper examination. Punjab’s GST growth from 2021-22 to 2025-
26 is almost exactly the same as India’s overall growth, while Haryana and Delhi have recorded
substantially higher growth. We are not saying that these figures alone prove the quantum of bogus
billing. We are saying that they raise a serious question that deserves an independent investigation.”
The Forum further said, “We have repeatedly complained to the Punjab SGST authorities regarding
bogus billing and revenue leakage, but our allegations have not been subjected to the comprehensive
independent investigation that we have demanded. We have therefore approached Union Home
Minister Shri Amit Shah and requested an ED or CBI investigation so that the entire network, if any,
between bogus-billing companies, intermediaries and officials can be uncovered.”
The Forum said, “If there is no nexus between officials and bogus-billing networks, an independent
investigation will establish that. If there is evidence of collusion, the investigation should identify
those responsible and the law should take its course. The objective is to protect government revenue
and honest taxpayers, not to prejudge any individual.”
The World MSME Forum has therefore requested the Union Home Minister to initiate a time-bound
independent investigation by the CBI and/or ED into the alleged bogus-billing ecosystem in Punjab,
including the actual quantum of fraudulent ITC, the actual revenue loss to the state, the functioning of
bogus firms, the role of intermediaries, the functioning of the GST registration and enforcement
system, previous Vigilance investigations, and whether any nexus exists between bogus-billing
entities and persons connected with the tax administration.
The forum also demanded that an special investigation shall be conducted by the ED of the
officers posted in Ludhiana, Jalandhar & Amritsar for long durations coz 90% of the bogus
billing has took place in these three commissionorates only.
The Forum said that only an independent investigation can establish the complete facts and determine
whether Punjab is suffering a substantial revenue loss because of bogus billing and fraudulent ITC.
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