The Karnataka Commercial Tax Department’s Enforcement Wing has uncovered a significant Goods and Services Tax (GST) fraud amounting to `39 crore, leading to the arrest of a gym and fitness centre owner in Bengaluru. Officials suspect the evasion figure may rise as investigations continue.
The accused had allegedly been collecting GST from customers but failed to remit it to the government. Authorities revealed that the individual had suppressed turnover figures and manipulated financial records by routing payments through multiple bank accounts and insisting on cash transactions to avoid detection. A series of coordinated searches at multiple locations in Bengaluru led to the seizure of incriminating documents, financial records, and electronic devices. Officials said the fraudulent scheme not only caused substantial revenue losses to the government but also disrupted fair competition in the business sector. The tax department has initiated proceedings to recover the evaded amount and has urged businesses to comply with GST regulations.
Source from: https://www.thehansindia.com/news/cities/bengaluru/gym-owner-arrested-for-39-cr-gst-fraud-951661
