Karnataka Cracks Down on Fake ITC Racket: Key Accused Arrested in Bidar Case

The Commercial Taxes Department of Karnataka continues its pursuit against fake Bill Traders whose illegal activities result in claims of fictitious and ineligible Input Tax Credit (ITC), seriously impacting the tax revenues of the government.

Mr. Rahul Kishan Rao Kulkarni (An accused Taxpayer), resident of Bidar District, Karnataka. Mr. Rahul was arrested and taken into custody in Hyderabad by a team of officers of the Department of Commercial Taxes, Government of Karnataka, on August 8, 2025. He has been produced before the Additional Civil Judge and JMFC Court Bidar. The Court has sent him to Judicial Custody.

The investigation officers said, He was involved in the creation of fake GST registrations in his name, his family members’ and his friends’ names by misusing Aadhar and PAN Cards and managing their bank accounts, using which tax invoices were passed to the tune of various crores, facilitating the claim of fake ITC by the recipient taxpayers without actual supply of goods or services. There are various other people involved in this racket. Most of the beneficiaries and recipients of fake ITC are work contractors.

The Commercial Taxes Department will recover tax along with interest and penalties and will take strict action on all fraudulent tax evaders. Officers of the Commercial Taxes Department are continuing their investigation and analyzing it from all angles.

This action gives a clear message about the fixed commitment to approve the rule of law, making sure equitable taxation and safeguarding both the State and its honest taxpayers‘ interests.