Karnataka’s tax landscape was shaken as DGGI Belagavi exposed a 593 crore rupee fake ITC scam orchestrated by GST practitioner Mohammad Saifullah. Arrested in Bengaluru, the kingpin admitted to masterminding a fake invoice empire using shell entities.
The fraud involved creating GSTINs for non-operational firms, pumping out invoices and e-way bills sans real trades. Commissions flowed to Saifullah, while claimants pocketed 235 crore in undue credits.
Sparked by a flagged registration, investigators swooped on Star Tax Consultant sites in Bengaluru. The raids peeled back layers of deception, revealing organized fakery.
Digital savvy marked the operation: online software tracked bogus flows, masking the absence of physical activity. Evidence overwhelmed the accused, securing his February 24 arrest.
Legal gears turned fast—Bengaluru court granted transit to Belagavi, followed by custody remand. This paves the way for deeper digs.
Ongoing probes aim to net beneficiaries and map the racket’s reach. Officials hint at wider involvement, promising comprehensive action.
Experts decry how such frauds undermine GST’s one-nation-one-tax promise. Practitioners, meant to aid compliance, are turning rogue, necessitating reforms.
Businesses must adopt tech for invoice validation to avoid entrapment. DGGI’s tech-driven approach—data analytics, AI—is revolutionizing detections.
This case exemplifies resolve against white-collar crime. As details emerge, it could reshape GST practitioner regulations, bolstering fiscal integrity.