Dealers in Bengaluru reverse Rs 17 cr claims made on fake GST invoices

BENGALURU: Sections of dealers in Bengaluru have reversed their input tax credit (ITC) claims worth Rs 17.45 crore after realising that they made their claims based on fake GST invoices, Karnataka Commercial Taxes Commissioner M.S.Srikar said.

The sustained drive by the Commercial Taxes department against fake ITC claims and a spate of recent arrests have created fear in errant businessmen. Those who have made ITC claims either by mistake or with an intention to cheat the government are reversing them fearing that we will get at them with use of technology and physical inspections, Srikar told ET.

We are initiating strict legal action to recover all taxes from fraudulent dealers, and on those registered dealers indulging in bill trading leading to fraudulent ITC claims.


In one such case, the special court for economic offences in Bengaluru has remanded city-based businessman Mangilal to judicial custody after he was found to be running a business in the name of a dead woman, and issuing fake GST invoices in order to claim ITC from the government.