The Karnataka Commercial Tax Department’s Enforcement Wing has uncovered a massive Goods and Services Tax (GST) fraud amounting to Rs 39 crore, leading to the arrest of a gym and fitness centre owner in Bengaluru.
The department suspects the total evasion figure could rise as the investigation progresses.
GST Evasion: Fraudulent Practices Exposed
The accused was allegedly collecting GST from customers but failing to remit it to the government. Officials revealed that the individual had been suppressing turnover figures and manipulating financial records by routing payments through multiple bank accounts. The gym owner also insisted on cash transactions to avoid detection, further deepening the scale of tax evasion.
Coordinated Raids and Seizure of Evidence
A series of well-planned searches at multiple locations across Bengaluru led to the seizure of incriminating documents, financial records, and electronic devices. Tax department officials stated that the fraudulent scheme resulted in significant revenue losses for the government while also creating an unfair competitive advantage in the fitness industry.
Government’s Crackdown on GST Fraud
In light of this major tax evasion case, the Karnataka Commercial Tax Department has initiated strict proceedings to recover the evaded amount. Authorities have reiterated the importance of businesses complying with GST regulations and warned against similar fraudulent activities.