₹1,400-Crore GST Fraud Unearthed Across Karnataka–Tamil Nadu; Bihar–Jharkhand Links Emerge

A major inter-state Goods and Services Tax (GST) fraud worth over ₹1,400 crore has been busted across Karnataka and Tamil Nadu, with links extending to Bihar and Jharkhand. The high-profile operation was led by 2021-batch IAS officer Kanishk Sharma, currently serving as Additional Commissioner of Commercial Taxes (Enforcement – South Zone), Karnataka.

The enforcement team under Sharma exposed a massive fake invoicing racket involving transactions amounting to ₹1,464 crore. The syndicate fraudulently claimed and passed on nearly ₹355 crore in Input Tax Credit (ITC) without any actual movement of goods, causing significant losses to the exchequer.

Coordinated Inter-State Raids

In what officials describe as a first-of-its-kind coordinated inter-state enforcement operation, simultaneous search and seizure actions were conducted in Bengaluru, Chennai, Vellore and Pernambut. The raids led to the seizure of mobile phones, SIM cards, pen drives, bank statements and rubber stamps of multiple shell companies used to facilitate the fraud.

The operation was carried out in close coordination with the Tamil Nadu Commercial Taxes Department. Four key accused were arrested and later remanded to judicial custody by a Bengaluru-based Special Court for Economic Offences.

Recognised for Excellence

For his outstanding contribution to revenue enforcement, Kanishk Sharma was recently honoured with the Best Revenue Officer Award for 2024 by Karnataka Revenue Minister Krishna Byre Gowda at a formal ceremony in Bengaluru.

Officials say the crackdown marks a decisive step toward dismantling organised financial fraud networks operating across state borders and strengthening GST compliance.

Academic and Administrative Journey

A native of Jamshedpur, Kanishk Sharma studied at Loyola School before earning a BTech degree from BITS Pilani. Instead of opting for a corporate career, he chose civil services and cleared the UPSC examination in 2021.

Before his current posting, Sharma served as Assistant Commissioner and Sub-Divisional Magistrate in Karwar, where he was credited with improving public access to revenue services, streamlining land records and strengthening grievance redressal mechanisms.

Family Background Rooted in Public Service

Kanishk Sharma hails from a family originally from Gaya, Bihar, which later settled in Jamshedpur. His father, Prabhat Sharma, is a former executive with Tata Steel. Public service runs in the family—his uncle is a senior officer in the Punjab cadre, while his cousin Karan Satyarthi is an IAS officer in the Jharkhand cadre.

A Message to Fraud Networks

The successful exposure of the ₹1,400-crore GST scam has sent a strong signal to tax evaders operating through shell companies and fake invoicing networks. Officials say more arrests and recoveries are likely as investigations expand into linked states.