Punjab to set up special fraud detection unit to check GST violations
Chandigarh, Aug 4 (PTI) Punjab Finance Minister Harpal Singh Cheema on Monday said a state-level special fraud detection unit will be set up in Patiala to uncover and probe high-value Goods and Services Tax violations.
This dedicated unit will detect and investigate GST frauds, with particular focus on breaking down circular trading operations, unearthing benami transactions, and eliminating the practice of fake invoicing.
“The Special Fraud Detection Unit (SFDU) will be empowered to initiate stringent enforcement actions, including cancellation of suspicious GST Identification Numbers (GSTIN), blocking wrongful Input Tax Credit claims, and recommending prosecution against offenders to uphold legal accountability,” he added.
Cheema said the SFDU will leverage advanced technologies, including artificial intelligence, data analytics and centralised back-end operations to enhance its detection capabilities.
The unit will conduct comprehensive data mining and pattern recognition across the state to identify anomalies in tax returns, transaction networks, and goods movement, he said.
The finance minister added that the unit will use data-driven red flags to selectively verify only dubious taxpayers, protecting honest taxpayers from unnecessary scrutiny.
Detailing the composition of the SFDU, Cheema stated that the unit will comprise a multidisciplinary team consisting of experienced tax officers, skilled IT professionals, a chartered accountant, and a legal officer.
He said this team will be equipped with real-time access to critical data sets such as GSTN information, e-way bill tracking, toll records, and RFID (radio frequency identification) trail analytics, enabling prompt and precise action against tax evasion.
Cheema informed that the SFDU will be empowered by robust legal provisions under relevant sections of the CGST (Central Goods and Services Tax) and Punjab GST Acts.
He said this will enable the SFDU to function as a technologically advanced, intelligence-driven enforcement agency.
“This initiative marks a decisive step toward safeguarding the state’s revenue and dismantling elaborate tax fraud networks that threaten economic integrity,” said Cheema.
The minister said the SFDU will play a pivotal role in safeguarding the state’s revenue and promoting a culture of compliance by taking proactive measures to detect and prevent tax evasion, ultimately contributing to the state’s economic stability and growth.