<p>Belagavi: In a major crackdown on GST fraud, officers of the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, have unearthed a massive fake Input Tax Credit (ITC) racket involving the use of fraudulent invoices worth approximately Rs 593 crore.</p>.<p>The action followed an investigation into a suspicious GST registration, which led to multiple search operations at premises linked to Star Tax Consultant in Bengaluru. The searches exposed a well-organised network engaged in issuing fake invoices without any actual supply of goods or services, enabling wrongful availment and passing on of ITC amounting to nearly Rs 235 crore.</p>.Bengaluru's Banashankari police arrest housekeeping staff posing as central tax officials, extorting Rs 5 lakh.<p>Preliminary investigation revealed that numerous GST registrations were being operated by accused solely for generating bogus invoices and e-way bills to facilitate fraudulent ITC claims by ultimate beneficiaries. The accused systematically used online accounting software to record and monitor transactions routed through several shell entities with no genuine business activity.</p>.<p>Mohammad Saifullah, a registered GST practitioner identified as the mastermind of the operation, was found to be managing multiple non-existent and shell GSTINs and orchestrating issuance of fake invoices and e-way bills in exchange for commission. Upon being confronted with incriminating evidence, he admitted to his role in the fraudulent scheme.</p>.<p>He was arrested on February 24 in Bengaluru and was remanded in judicial custody.</p>
<p>Belagavi: In a major crackdown on GST fraud, officers of the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, have unearthed a massive fake Input Tax Credit (ITC) racket involving the use of fraudulent invoices worth approximately Rs 593 crore.</p>.<p>The action followed an investigation into a suspicious GST registration, which led to multiple search operations at premises linked to Star Tax Consultant in Bengaluru. The searches exposed a well-organised network engaged in issuing fake invoices without any actual supply of goods or services, enabling wrongful availment and passing on of ITC amounting to nearly Rs 235 crore.</p>.Bengaluru's Banashankari police arrest housekeeping staff posing as central tax officials, extorting Rs 5 lakh.<p>Preliminary investigation revealed that numerous GST registrations were being operated by accused solely for generating bogus invoices and e-way bills to facilitate fraudulent ITC claims by ultimate beneficiaries. The accused systematically used online accounting software to record and monitor transactions routed through several shell entities with no genuine business activity.</p>.<p>Mohammad Saifullah, a registered GST practitioner identified as the mastermind of the operation, was found to be managing multiple non-existent and shell GSTINs and orchestrating issuance of fake invoices and e-way bills in exchange for commission. Upon being confronted with incriminating evidence, he admitted to his role in the fraudulent scheme.</p>.<p>He was arrested on February 24 in Bengaluru and was remanded in judicial custody.</p>