Quick Summary
Since the introduction of the Goods and Services Tax (GST) in 2017, a sophisticated scam has flourished, exploiting systemic loopholes and siphoning thousands of crores from the exchequer each year. Despite hundreds of fraudsters being apprehended, the masterminds behind the operations remain elusiv
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FAQ :
The scam involves fraudsters establishing fake companies, issuing bogus invoices, and misusing input tax credits to illegally claim substantial refunds from the government.
The masterminds often operate from different regions, making enforcement a logistical challenge. Fraudulent companies also frequently shut down and disappear within months, making it hard to track the culprits.
New investigative tactics, including the use of biometric technology, are being employed in a nationwide crackdown to target fraudsters more effectively.
Karnataka's latest operation identified 1,193 phantom firms, blocked Rs 300 crore in false claims, and recovered Rs 14 crore so far.
Officials have called for tougher laws and enhanced coordination between states to stop the ongoing drain on government revenue.
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