Officials of the Commercial Tax Department, south zone, on Tuesday unearthed a tax evasion racket and booked 86 iron and steel and scrapdealers in and around Bengaluru using fake Input Tax Credit (ITC) facility.
A comprehensive probe carried out for the last two months to ascertain the goods and service tax (GST) revealed a complex web of fraudulent activities leading to the unravelling of a significant case involving ITC credit availment by a series of tax payers.
According to sources, the modus operandi of the accused was to avail ITC from dealers whose registrations have been suspended and cancelled by the department. In addition to this, the accused availed ITC from dealers whose business establishment premises do not even exist. The investigation further uncovered instances of availing ITC from dealers who had obtained registration through the submission of fraudulent documents intending to cheat the State revenue.
