Rajasthan Man Arrested For Massive Fake GST Scam Involving Crores In Bogus ITC Claims

Bengaluru: The Commercial Tax sleuths have arrested Kailash Bishnoi of Jalore, Rajasthan, who was involved in creation of fake GST registrations and claim bogus Input Tax Credit (ITC) from the government.

The Commercial Tax Additional Director Chandrashekhar Naik said that Kailash Bishnoi used to create fake GST Registrations and Bank accounts by fabricating Aadhar cards.

Using these fake accounts, he used to facilitate fictitious transportation of metal scraps from one place to another by raising tax invoices to several hundred crores. Later, he would claim Input Tax Credit for this transaction, which would be passed on to some manufacturer for commission.

In Karnataka alone, he had created over 17 companies and declared a turnover to the tune of over Rs 208 crore. By filing this transaction, he had claimed ITC to the tune of Rs 39 crore, which was passed on to some manufacturers.

The Bengaluru East police and the Commercial Tax department had got the wind of this clandestine operation way back in 2023. Kailash Bishnoi had tried opening a bank account at Murugesh Palya in Jeevan Bima Nagar using a fake Adhaar Card. The bank manager got suspicious and lodged a complaint with the JB Nagar police.

Though the Commercial Tax and Police managed to arrest two of his associates -- Rohit and Rohtash, it was very difficult to track Kailash. He used over 14 phone numbers, making it very difficult to track him down. Besides, he was constantly on the move in states like Rajasthan, Uttar Pradesh, Madhya Pradesh, Telangana and Chattisgarh to avoid the officials. Apart from these states, Kailash Bishnoi was active both in Tamil Nadu and Karnataka.