BENGALURU: Data analytics has helped tax sleuths bust an evasion racket involving over Rs 350 crore, and recover dues of Rs 64 crore. “It is analysis of bills where there is only one-way movement, and helped us bust a massive tax evasion racket. A similar network was busted about two months ago, again with the help of data analytics,” said sources.
Thanks to this massive expose, GST collection for November will be larger. Explaining the scam, sources said, “Iron and steel dealers using fake input tax credit had been a major worry for the authorities, as they had evaded tax running into hundreds of crores.”
Commercial Tax Commissioner C Shikha refused to reveal details of those involved int the racket. She said they were using input tax credit from dealers whose registrations had been suspended, and they had used names of entities that were clever fakes, and were defrauding the system. In some cases, sleuths found they had used fraudulent documents of genuine firms, and her team had used data analytics and other means of information gathering.
Sources said the department had some information about fishy goings on and decided to track transactions. They said two were arrested eight weeks ago and both were produced before court and remanded in judicial custody.
Shikha said the racket could be larger and they were still probing the details. Asked about penal clauses, she said fake invoicing is a serious crime and penalties can range from fines to confiscation of goods, attachment of properties and bank accounts, and even imprisonment.