Major GST Fraud Case: Bidar Businessman Arrested for ₹9.25 Crore Evasion

The Commercial Taxes Department has successfully arrested Rahul Kishan Rao Kulkarni, a resident of Bidar district, for allegedly evading ₹9.25 crore in GST through the creation of fake GST registrations.

This case marks a significant breakthrough in the Kalyana Karnataka region and highlights the department’s commitment to protecting government revenue and the interests of honest taxpayers.

Arrest and Joint Operation

Kulkarni was apprehended in Hyderabad through a joint operation involving:

Kalaburagi Enforcement (East Zone)

Bengaluru Vigilance Wing

Telangana State GST authorities

After arrest, he was produced before court and remanded to judicial custody.

Senior officers involved in the operation included:

Enforcement Assistant Commissioner (Bidar) Parvatagouda S.

Enforcement Commercial Tax Officer Ashok Shembelli

Officers from Kalaburagi and Shivamogga

Modus Operandi

Kulkarni fraudulently generated fake GST registrations using the Aadhaar and PAN cards of family members and associates.

He ran four different firms and issued invoices without any actual supply of goods or services.

Through these fake invoices, 132 individuals, many believed to be work contractors, claimed fraudulent Input Tax Credit (ITC).

Kulkarni also maintained bank accounts in the names of others to facilitate the fraudulent transactions.

Duration and Scale of Fraud

The fraudulent activity ran over four years, involving false claims worth several crores.

Investigations are ongoing to identify all beneficiaries of the racket.

Legal and Enforcement Actions

The department has warned that misuse of ITC will attract strict penalties, including imprisonment of up to five years.

The Joint Commissioner of Commercial Taxes (Enforcement), Yasmin Begum Walikar, stated:

The department will take stringent action against all those who availed fake ITC, and recovery will be made along with interest and penalty.

This case serves as a strong message to individuals and businesses attempting to commit GST fraud.

Significance and Takeaways

The action underscores the department’s commitment to protecting revenue and maintaining a fair taxation system.

It highlights the importance of compliance with GST laws and vigilance against fraudulent practices.

The case is a wake-up call for contractors, businesses, and individuals to ensure proper documentation and honest reporting.

Conclusion:

The arrest of Rahul Kishan Rao Kulkarni is a major achievement for the Commercial Taxes Department and a reminder that fraudulent practices will be dealt with strictly. This operation not only recovers lost revenue but also protects the interests of honest taxpayers in the Kalyana Karnataka region and beyond.