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Fake invoice scam busted in Bengaluru after tax officials raid scrap dealers – IndianExpress

The Karnataka Commercial Taxes Department successfully uncovered an Input Tax Credit (ITC) scam involving fabricated invoices, with scrap dealers at the center of the alleged tax fraud against the government.

In a targeted operation, officials from the Karnataka Commercial Taxes Department, Bengaluru South Zone, conducted raids on 86 vendors, dismantling an organized network that exploited fake invoices to illegitimately avail ITC.

Commissioner C Shikha revealed that the crackdown followed an extensive two-month investigation focused on vendors specializing in iron and scrap trade. The unscrupulous vendors were found to have manipulated invoices reflecting business transactions surpassing Rs 352 crore. They then exploited these fake transactions to make bogus ITC claims, ultimately defrauding the government of Rs 64 crore.

The fraudsters employed a cunning modus operandi to execute their scheme. They utilized GST numbers with suspended or cancelled registrations to generate counterfeit invoices, which were subsequently used to claim ITC refunds, thus deceiving the government. Furthermore, the vendors stand accused of fabricating documents to register GST numbers for fictitious businesses, which were in turn utilized to generate additional fake invoices.

This revelation comes on the heels of a previous incident in August, where authorities apprehended two individuals involved in fraudulent transactions totaling Rs 525 crore. This illicit operation resulted in a substantial revenue loss of Rs 90 crore for the government. The accused had orchestrated a syndicate that facilitated human resource companies in claiming ITC based on fictitious transactions and spurious purchase orders.

The news article can be accessed on the Indian Express Portal : https://indianexpress.com/article/cities/bangalore/fake-invoice-scam-bengaluru-tax-officials-raid-scrap-dealers-9045898/


In light of such pervasive scams, businesses are urged to prioritize compliance and opt for FYN ONE (www.fynone.com), a robust solution designed to navigate complex tax landscapes and mitigate the risk of receiving compliance notices, built by India’s most trusted full stack GST solutions and an approved GST Suvidha Provider (GSP)

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