<h1>Karnataka bill mandates track-and-trace for tobacco and arecanut to prevent GST fraud and misuse of ITC</h1> The Karnataka Legislative Assembly passed a bill introducing a track-and-trace system for tobacco and arecanut products to address GST leakage by monitoring the entire supply chain from raw materials to final products. The bill aims to detect discrepancies between reported sales and actual sales volumes and to prevent misuse of input tax credit (ITC), including illegal ITC claims and refund scams. Additionally, the Assembly considered a separate bill amending 12 laws to decriminalize certain offenses and promote trust-based governance to facilitate ease of living and business operations.