An Input Tax Credit (ITC) scam making use of bogus invoices was busted by the Karnataka Commercial Taxes Department. According to officials, scrap dealers had allegedly committed tax fraud against the government.
Raids were carried out against 86 vendors by the Karnataka Commercial Taxes Department of Bengaluru South Zone and an organised network using fake invoices to avail ITC was busted.
According to C Shikha, Commissioner, Commercial Taxes Department, the raids were carried out after a two-month-long investigation involving vendors who deal in iron and scrap.
The vendors faked invoices of business transactions in excess of Rs 352 crore and used fake ITC claims worth Rs 64 crore to cheat the government.
The fraudsters had a unique modus operandi to defraud the government. They made use of GST numbers whose registration was either suspended or cancelled to generate fake invoices.
Read more at: The Indian Express
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