Karnataka’s Commercial Taxes Department officials have arrested a key mastermind in connection with a multi-state GST fraud centred around fake GST claims. He issued fake tax invoices to facilitate bogus claims of input tax credit (ITC) by dealers without remitting the taxes to the governments after the initial transactions. Siddiq used fake GST registrations to unlawfully transfer bogus ITC to fake taxpayers registered in Karnataka. The two neighbouring state GST officials extended all support in this important operation, the statement said. By busting the racket, the department has successfully dismantled a fake ITC racket involving approximately 100 bogus registrations across Karnataka, Kerala, and Tamil Nadu.

Source: Economic Times January 19, 2024 08:32 UTC