GST Fraud: Commercial Tax Department busted Fake GST Bill Scam; 2 Mastermind Arrested

The Commercial Taxes Department‘s Enforcement Wing, South Zone Bengaluru, Government of Karnataka, busted a fake GST bill operators’ racket in which a syndicate was run to assist companies in the service sector of manpower and labour supplies to avail fake ITC and artificially inflate the turnover.

According to an official announcement, this is the first operation of its sort to expose fake invoice fraud in the service industry.

An investigation by the Enforcement Wing found that roughly 30 bogus firms were created using the credentials of family members, relatives, acquaintances, and others. While the transaction under investigation had a total turnover of 525 crore, the enforcement wing suspects a revenue loss of around 90 crore to the government, according to a release.

The enforcement authorities detained two suspected masterminds, Guru Prakash H.M. and Manjunathiah H.M.on wednesday, more arrests in this case are very likely to occur, as per official release.

The Department of Commercial Taxes of Karnataka is rigorously contemplating strong action against fake invoicing and tax evaders. Fake invoicing and tax evasion in GST can result in the arrest, prosecution, and imprisonment of those involved, along with other such measures as fines, penalties, confiscation of goods and provisional attachment of properties and bank accounts, added the release.