The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, has exposed a significant fake Input Tax Credit (ITC) scam amounting to around Rs 593 crore. The main culprit, Mohammad Saifullah, a registered GST practitioner, was apprehended in Bengaluru following the discovery.
Saifullah was found to be orchestrating a complex network of non-existent and shell GSTINs to generate fake invoices and e-way bills for a commission. Upon facing evidence, he confessed to his involvement in the fraudulent scheme. He was taken into custody on February 24 under Section 69 of the CGST Act, 2017.
Following investigations into suspicious GST registration, authorities conducted searches at locations associated with Star Tax Consultant in Bengaluru. These searches unveiled a well-organized operation issuing bogus invoices without actual goods or services, leading to wrongful availment and transfer of ITC worth nearly Rs 235 crore. Preliminary findings suggest the creation of multiple fake GST registrations solely for generating fraudulent invoices and e-way bills.
Officials disclosed that the accused utilized online accounting software to meticulously document transactions through shell entities with no legitimate business activities. The investigation is ongoing to uncover additional beneficiaries and ascertain the full scope of the deception.
