Belagavi: In a major crackdown on GST fraud, the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, has uncovered a massive fake Input Tax Credit (ITC) racket involving fraudulent invoices worth approximately ₹593 crore.
For more details : https://www.deccanherald.com/amp/story/india/karnataka/belagavi-gst-intelligence-busts-rs-593-crore-fake-invoice-fraud-3914718
The investigation was initiated after officials detected a suspicious GST registration. This led to multiple search operations at premises linked to Star Tax Consultant in Bengaluru, where a well-organised network was found to be issuing fake invoices without actual supply of goods or services.
Fraud Worth ₹235 Crore in ITC Claims
According to officials, the racket enabled wrongful availment and passing on of ITC amounting to nearly ₹235 crore. Preliminary findings revealed that several GST registrations were created and operated solely for generating bogus invoices and e-way bills to facilitate fraudulent ITC claims by ultimate beneficiaries.
The accused allegedly used online accounting software to systematically record and monitor transactions routed through multiple shell entities with no genuine business activity.
Mastermind Arrested
Mohammad Saifullah, a registered GST practitioner identified as the mastermind behind the operation, was found to be managing several non-existent and shell GSTINs. He allegedly orchestrated the issuance of fake invoices and e-way bills in exchange for commission.
Officials said that upon being confronted with incriminating evidence, he admitted to his role in the fraudulent scheme. He was arrested on February 24 in Bengaluru and has been remanded to judicial custody.
Further investigation is underway to identify other beneficiaries involved in the racket.
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