Kerala and Karnataka tax officials have busted a nationwide cartel involved in fake Goods and Services Tax (GST) registrations. In a June 22 operation, the intelligence unit of the Kerala State Goods and Services Tax (SGST) department in Kanhangad, in collaboration with other Kerala SGST intelligence units and tax intelligence units in Karnataka, uncovered the existence of 30 fake registrants spread across the country, operating under benami firms. The cartel managed to avail themselves of Input Tax Credit (ITC) worth ₹9 crore without engaging in legitimate trade activities, the department said. Coordinated search“During the coordinated searches conducted at 27 business establishments in Kerala and Karnataka, crucial statements and substantial incriminating evidence were obtained, further bolstering the ongoing investigation. The seamless collaboration between the intelligence formations of Karnataka and Kerala was instrumental in the success of this operation.

Source: The Hindu June 26, 2023 13:16 UTC