Ludhiana, June 11 -- The Punjab state taxation department has busted a major Goods and Services Tax (GST) fraud involving fake input tax credit (ITC) transactions, leading to the registration of 12 FIRs and recovery of more than Rs.20 crore.

Input tax credit refers to an illegal practice where businesses claim tax deductions on GST using fraudulent invoices. The deputy commissioner of state tax (DCST) Ludhiana division, Randhir Kaur said the racket was detected through a data-driven verification exercise comparing purchase details reflected in GSTR-2A/2B returns with corresponding e-way bill records.

The analysis exposed large-scale discrepancies, indicating fraudulent transactions and misuse of GST registrations.

According to the depa...