Bidar businessman arrested for ₹9.25 crore GST evasion through fake invoices

The Commercial Taxes Department has arrested Rahul Kishan Rao Kulkarni, a resident of Bidar district, for allegedly creating fake GST registrations and evading taxes to the tune of ₹9.25 crore.

Kulkarni was arrested in Hyderabad in a joint operation by officers of the Kalaburagi Enforcement (East Zone), the Bengaluru Vigilance Wing, and Telangana State GST authorities. He was produced before court and remanded to judicial custody.

According to officials, Kulkarni fraudulently generated fake GST registrations using Aadhaar and PAN cards of his family members and associates. Through four different firms, he allegedly issued invoices without any actual supply of goods or services. By doing so, he enabled 132 individuals to claim fraudulent input tax credit (ITC). Many of the beneficiaries are believed to be work contractors.

Addressing mediapersons at her office in Kalaburagi on Saturday Joint Commissioner of Commercial Taxes (Enforcement), Yasmin Begum Walikar, said that the accused maintained bank accounts in the names of others to manage the fraudulent transactions.

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

Officials said the fraud ran over a period of four years, with false claims running into several crores. Investigations are underway to identify all beneficiaries of the racket. The department has also warned that misuse of ITC would invite strict penal action, including imprisonment of up to five years.

Calling it a major breakthrough for the Kalyana Karnataka region, officials stressed that the action underscores the department’s commitment to protecting revenue and the interests of honest taxpayers.

Senior officials from the Commercial Taxes Department, including Enforcement Assistant Commissioner (Bidar) Parvatagouda S., Enforcement Commercial Tax Officer Ashok Shembelli, and other enforcement officers from Kalaburagi and Shivamogga, were part of the operation.