The Enforcement Wing (South Zone) of the Karnataka Commercial Taxes Department has uncovered a massive interstate fake billing operation involving bogus transactions worth ₹1,464 crore. The elaborate fraud, spread across Karnataka and Tamil Nadu, centred around false billing in cement, iron, steel, and other construction materials to evade Goods and Services Tax (GST).
Officials say the syndicate fraudulently claimed approximately ₹355 crore in input tax credit (ITC) through shell companies and fabricated trade documents.
The racket was detected using advanced GST data analytics and the department’s Non-Genuine Taxpayers (NGTP) system. Investigators traced suspicious IP activity and circular billing patterns, prompting large-scale search and seizure operations across multiple locations in both states.
According to authorities, the accused created numerous fake GST-registered firms using forged rental agreements, counterfeit stamp papers, fabricated signatures, bogus tax receipts, and false notary certifications. These shell companies generated fake invoices to illegally claim ITC and later cancelled their registrations to erase audit trails.
Raids conducted in Bengaluru, Chennai, Vellore, and Pernampattu led to the seizure of 24 mobile phones, 51 SIM cards, two pen drives, bank records, and seals belonging to several firms. Officials believe the evidence will help map the financial network and identify others linked to the scam.
The investigation is ongoing, and further arrests are expected.
(This story is published from a syndicated feed)
