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.
