A Central GST unit team in Belgaum apprehended a man on Wednesday for operating a fake GST invoice racket. According to a statement by Principal Commissioner Dinesh Panagarkar, the team acted on specific intelligence and uncovered a scheme where fake invoices totaling ₹132 crore were generated, resulting in fraudulent input tax credit amounting to ₹23.82 crore.
The team detained Naqeeb Najeeb Mulla, a tax consultant and proprietor of Federal Logistics, for allegedly participating in the fraudulent procurement and transfer of Input Tax Credit through the issuance of counterfeit invoices without actual goods or services being supplied.
Officials stated that Mulla established a fictitious entity named Federal Logistics and Co. He managed the filing of returns and other GST-related matters for several companies, and is accused of filing manipulated GST returns.
His method involved collecting cash payments from clients to settle monthly GST obligations, which he diverted for personal gain, resulting in embezzlement. Mulla discharged GST liabilities using fraudulent Input Tax Credit obtained through his own or controlled firms.
During interrogation and review of relevant documents, Mulla confessed to misappropriating cash by falsifying or altering monthly GST Returns. He was found to have violated GST laws as early as 2017.
Following his arrest, Mulla was brought before the JMFC II Court in Belgaum , where the Magistrate ordered him to judicial custody for 14 days, according to the statement.
