India, Jan. 5 -- The Enforcement Wing (South Zone) of the Commercial Taxes Department, Government of Karnataka, has unearthed and dismantled a major interstate fake invoicing cartel operating across Karnataka and Tamil Nadu, involving fraudulent transactions amounting to Rs 1,464 crore.

The racket primarily dealt with cement, iron and steel, and other building materials, and was used to generate fake inward and outward supply invoices. Officials said the cartel wrongfully availed and passed on the Input Tax Credit (ITC) of approximately Rs 355 crore without any corresponding movement of goods, causing significant loss to the government revenue.

The detection was made possible through advanced GST system analytics. The department's in-ho...