Bengaluru, Feb 28 (IANS) The Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, has uncovered a large-scale fake Input Tax Credit (ITC) scheme involving fraudulent invoices totalling approximately Rs 593 crore. The alleged mastermind was arrested in Bengaluru, according to an official statement issued Saturday.
Mohammad Saifullah, a registered GST practitioner, has been identified as the mastermind behind the operation.
He actively managed multiple non-existent and shell GSTINs, orchestrating the issuance of fake invoices and e-way bills in exchange for commissions based on invoice value.
Officials stated that he admitted his role in the scheme when presented with incriminating evidence.
Saifullah was arrested on February 24 in Bengaluru under Section 69 of the CGST Act, 2017.
He was presented before the Special Court for Economic Offences in Bengaluru, which granted transit remand for his transfer to Belagavi.
He was subsequently presented before the court in Belagavi and remanded to judicial custody.
The arrest followed an investigation into a suspicious GST registration, which led officers to conduct multiple searches of premises linked to Star Tax Consultant in Bengaluru.
The searches revealed a well-organised network issuing fake invoices without actual supply of goods or services, enabling wrongful availment and transfer of ITC totalling nearly Rs 235 crore.
Officials reported that a preliminary investigation found several GST registrations were created and operated solely to generate bogus invoices and e-way bills.
These fake documents facilitated fraudulent ITC claims by beneficiaries. The accused allegedly used online accounting software to systematically record and monitor transactions through multiple shell entities with no genuine business activity.
Officials stated that further investigation is underway to identify additional beneficiaries and determine the full extent of the fraud.
–IANS
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