Chandigarh, Aug. 5 -- To institutionalise tax enforcement, finance and taxation minister Harpal Singh Cheema on Monday announced the decision to establish a state-level special fraud detection unit (SFDU) headquartered at Patiala. This dedicated Unit will streamline the detection and bring consistency in investigating complex cases involving Goods and Services Tax (GST) violations. Cheema stated that the SFDU will be tasked with uncovering and probing high-value GST frauds, with particular focus on breaking down circular trading operations, unearthing benami (anonymous) transactions, and eliminating the practice of fake invoicing. "The unit will be empowered to initiate stringent enforcement actions, including cancellation of suspicious GST identification numbers (GSTINs), blocking wrongful claims of input tax credit (ITC), and recommending prosecution against offenders to uphold legal accountability", he added. The FM highlighted that the SFDU will leverage advanced technologies, including artificial intelligence (AI), data analytics, and centralised backend 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 further stated that the Unit will use data-driven red flags to selectively verify only dubious or miscreant taxpayers, protecting honest taxpayers from unnecessary scrutiny. This strategic approach aims to strike a balance between effective enforcement and taxpayer facilitation, ensuring a more efficient and taxpayer-friendly administration, he emphasised. 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 that this team will be equipped with real-time access to critical datasets such as GSTN information, e-way bill tracking, toll records, and RFID trail analytics, enabling prompt and precise action against tax evasion. Cheema said that SFDU will be empowered by legal provisions under Sections 67, 70, 74, and 132 of the CGST/PGST Acts, complemented by relevant sections of the Indian Penal Code (IPC)....