Daijiworld Media Network - Belagavi
Belagavi, Mar 1: In a major crackdown, officials of the Directorate General of GST Intelligence (DGGI), Belagavi zonal unit, have unearthed a massive fake Input Tax Credit (ITC) racket involving fraudulent invoices worth Rs 593 cr across multiple states.
According to an official press release issued by DGGI, the investigation began with scrutiny of a suspicious GST registration. The probe eventually led officials to a Bengaluru-based firm, M/s Star Tax Consultants, which is suspected of orchestrating large-scale tax evasion.
Search operations conducted at premises linked to the firm exposed a well-organised syndicate engaged in issuing fake invoices without actual supply of goods or services. The network allegedly enabled fraudulent availment and transfer of ITC amounting to approximately Rs 235 cr.
Investigators found that several GST registrations were created and operated solely for generating bogus invoices and e-way bills. These were used by beneficiary entities to claim ineligible tax credits and evade government revenue.
Officials further revealed that the accused systematically recorded and monitored fake transactions using advanced online accounting software. The transactions were routed through a web of non-existent business entities and shell companies that had no genuine commercial activity.
The investigation identified Mohammad Saifulla, a registered GST practitioner, as the mastermind behind the operation. He is accused of managing multiple fake GST Identification Numbers (GSTINs) and coordinating the issuance of fraudulent invoices and e-way bills in exchange for commissions calculated on invoice values.
During interrogation, and after being confronted with substantial documentary and digital evidence collected by the investigators, Saifulla was arrested in Bengaluru under Section 69 of the CGST Act, 2017.
He was initially produced before the Special Court for Economic Offences in Bengaluru, which granted transit remand for his transfer to Belagavi. Subsequently, he was presented before the JMFC-IV Court in Belagavi, which remanded him to judicial custody.
Further investigation into the racket is under way.