Pramesh S Jain & Yogesh K Porwar
O
fficials of the commercial tax department south zone on tuesday busted a tax evasion racket and booked 86 iron and steel and scrap dealers in and around Bengaluru using fake input tax credit facility.
A comprehensive probe was carried out for the last two months to ascertain the goods and service tax probe revealed that complex web of fraudulent activities leading to unravelling significant case involving ITC credit availment by a series of tax payers .
The Modus Operandi of the accused used to avail the ITC from dealers whose registrations have been suspended and cancelled by the department.
In addition to this the accused avail ITC from dealers whose business establishments premises do not even exist.
The Investigation further uncovered instances of availing ITC from dealers who had obtained registration through the submission of fraudulent documents intending to cheat the state revenue.
The total turnover implicate in this elaborate scheme amounts to Rs.352 crores with fake ITC involved estimated at Rs.64 crore .
This revelation underscores the magnitude of tax evasion and the need for rigorous enforcement measures to protect the state’s revenue,said,Shikha C, Commissioner of Commercial taxes.
In this pursuit,the department is rigorously contemplating strong action against fake invoicing and tax evaders .
Fake invoicing and tax evasion in GST is punishable offence including fines,penalties,confiscation of goods and attachments of properties and bank accounts,Ms. Shikha,said .
The department has urged the public remain vigilant and report any suspicious activities related to tax evasion.
