Commercial Tax department unearths GST bill scam, arrest two
According to an official release, this is the first of its kind of operation where fake invoice racket in the service sector has been busted.
The Enforcement Wing’s probe revealed that around 30 fake entities were floated using the credentials of family members, relatives, friends and other persons. While the transaction under the scanner involves a total turnover of Rs 525 crore, the enforcement wing suspects a revenue loss of approximately Rs 90 crore to the government, a release said.
The enforcement officers arrested two alleged masterminds – Guru Prakash H.M., and Manjunathiah H.M. on Wednesday. More arrests are likely to follow in this case, the official release stated .
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.
