Pramesh S Jain & Yogesh K Porwar
The Commercial Taxes Department of Karnataka arrested Key Mastermind in a Two-Day Operation against Multi-State Multi-crore GST Fraud and arrested two persons running the racket .
According to an official release,this operation spanning over two days,conducted in collaboration with Kerala State GST authorities,revealed significant fraudulent activities.
The accused Mohammed Siddiq,the mastermind and son of Javed Iqbal,was caught in Mysuru on Wednesday.
The accused used to acquire dummy GST registrations using forged documents,facilitating a scrap business in Kerala,Tamilnadu,and Karnataka.
He further issued fake tax invoices,misappropriating Input Tax Credit without remitting the taxes to the governments in the initial transaction.
The fraudulent network extended its operations to Kerala and Tamil Nadu, obtaining fake GST registrations to unlawfully transfer bogus Input Tax Credit to fake taxpayers registered in Karnataka.
According to the officials,this aimed to offset outward tax liability,evading GST cash responsibility on outward supplies and resulting in substantial losses to the government exchequer.
The two neighbouring state GST officials extended all support in this important operation.
The investigation led by JCCT (Vigilance),Bengaluru, exposing a systematic modus operandi orchestrated by the cartel,with accomplices in Mysuru,Mangaluru,and Kerala providing crucial support.
Additionally,the complicity of certain auditors and GST practitioners in these fraudulent activities has been revealed.
The Department successfully dismantled a fake ITC racket involving approximately 100 bogus registrations across Karnataka,Kerala, and Tamil Nadu.
These entities issued counterfeit invoices totaling $ 1008 Crores,leading to the illegal availing of Input Tax Credit amounting to $ 180 Crores by the scrutinized beneficiaries.
The Department emphasizes its commitment to ongoing operations within the state,assuring stringent actions against fraudulent taxpayers engaged in the illicit passing and availing of Input Tax Credit.These actions aim to curb substantial losses to government revenue.
The Commercial Taxes Department remains vigilant and proactive in safeguarding the integrity of the GST system,reinforcing its dedication to combating fraudulent practices,C Shikha,Commissioner of Commercial Taxes(K), said .
