The state government has unearthed an alleged Rs 22.53-crore GST evasion involving Mandi Gobindgarh-based Jagat Metals Private Limited, resulting in on-the-spot cash recovery of Rs 9.5 crore.Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema said the Taxation Department had initiated strict proceedings against the firm following an intelligence-led investigation.“Through meticulous data analysis, our taxation officials discovered that the company had wrongfully claimed input tax credit (ITC) amounting to around Rs 22.53 crore. We found that these massive claims were directly linked to suppliers whose GST registrations had already been cancelled by the authorities concerned,” Cheema said.Notably, Jagat Metals is a 40-year-old company with iron and steel units in Mandi Gobindgarh.Intermediaries claimed significant tax creditCheema said the department’s investigation found that several intermediary suppliers in the chain had also claimed significant ITC from dealers whose GST registrations had been cancelled. This raised concerns about the authenticity of the transactions and the actual movement of goods.“Our department conducted a rigorous inspection at the firm’s business premises in Mandi Gobindgarh on September 7. Realising that they were cornered, the party deposited Rs 9.5 crore as SGST in cash right on the spot,” he said.Cheema said the department was using data analytics and technology-driven investigations to identify suspected bogus billing networks.