The Preventive and Intelligence wing of CentralTax, GST Commissionerate, Mysuru, hasunearthed an invoice racket involving a taxamount of over 14 crore and arrested oneperson in the connection.
“The modus operandi adopted by the tax evaderis that they float fake units at various places,both within and outside the State, and raise fakeinvoices as if goods are bought from there andagain raise further fake invoices to the existingunits, who in turn utilise the tax credit passed onto them to pay their taxes. It is just a transactionof crores of rupees on paper only without actualreceipt and supply of goods and in the bargaincrores of an input tax credit is availed andutilized, causing huge loss to the governmentexchequer,” said a statement here.
The officers of Central GST in Siddarthanagar inMysuru arrested the proprietor of Rub Traders,Mysuru, on January 8. The arrested personproduced before the Magistrate in the court offifth JMFC, who remanded him in judicialcustody, said K.B. Nanaiah, AssistantCommissioner of Central Tax, HeadquartersPreventive Unit (HPU), GST Commissionerate,Mysuru, in the statement.
While further investigation by the Central GSTauthorities in the matter is under progress, theMysuru Central GST Commissionerate haswarned that it was viewing these fraudulentactivities very seriously. “All efforts will be madeto nab the culprits not only in issuance of fakeinvoices but also in other sectors, where there istax evasion of GST,” the statement said beforeadding that the operation against the fakeinvoice racket was carried out under theguidance of the Principal Commissioner ofCentral Tax, Mysuru CGST Commissionerate.