In a significant crackdown on GST evasion, officers of the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, have uncovered a large-scale fake Input Tax Credit (ITC) scam involving fraudulent invoices worth nearly ₹593 crore.
The case came to light during a probe into a suspicious GST registration, which led to multiple search operations at premises linked to Star Tax Consultant in Bengaluru. The searches revealed a well-structured network allegedly issuing fake invoices without any actual supply of goods or services, enabling wrongful availment and transfer of ITC amounting to around ₹235 crore.
Preliminary findings indicate that several GST registrations were operated solely to generate bogus invoices and e-way bills, facilitating fraudulent ITC claims by end beneficiaries. The accused reportedly used online accounting software to record and track transactions routed through multiple shell entities with no genuine business activity.
Mohammad Saifullah, a registered GST practitioner identified as the key accused, was found managing several non-existent and shell GSTINs and coordinating the issuance of fake invoices and e-way bills in return for commission. When confronted with evidence, he admitted to his involvement in the racket.
He was arrested in Bengaluru on February 24 and has been remanded to judicial custody.
