Invoicing racket to defraud GST busted in Mysuru

Mysuru, January 10, 2024 

The Preventive and Intelligence wing of Central Tax, GST Commissionerate, Mysuru, has unearthed an invoice racket involving a tax amount of over ₹ 14 crore and arrested one person in the connection.

“The modus operandi adopted by the tax evader is that they float fake units at various places, both within and outside the State, and raise fake invoices as if goods are bought from there and again raise further fake invoices to the existing units, who in turn utilise the tax credit passed on to them to pay their taxes. It is just a transaction of crores of rupees on paper only without actual receipt and supply of goods and in the bargain crores of an input tax credit is availed and utilized, causing huge loss to the government exchequer,” said a statement here.

The officers of Central GST in Siddarthanagar in Mysuru arrested the proprietor of Rub Traders, Mysuru, on January 8. The arrested person was produced before the Magistrate in the court of fifth JMFC, who remanded him in judicial custody, said K.B. Nanaiah, Assistant Commissioner of Central Tax, Headquarters Preventive Unit (HPU), GST Commissionerate, Mysuru, in the statement.

While further investigation by the Central GST authorities in the matter is under progress, the Mysuru Central GST Commissionerate has warned that it was viewing these fraudulent activities very seriously. “All efforts will be made to nab the culprits not only in issuance of fake invoices but also in other sectors, where there is tax evasion of GST,” the statement said before adding that the operation against the fake invoice racket was carried out under the guidance of the Principal Commissioner of Central Tax, Mysuru CGST Commissionerate.

[The Hindu]