Officials Bust Rs 132 Crore Fake GST Invoice Racket, Arrest One
Acting on specific intelligence, officials of the Preventive Unit of Central GST, Belagavi Commissionerate, uncovered a fake GST invoice racket worth Rs 132 crore. The fraudulent scheme involved fake Input Tax Credit (ITC) amounting to Rs 23.82 crore, and led to the arrest of one individual.
The accused, Naqeeb Najeeb Mulla, is the proprietor of Federal Logistics and Company in Belagavi. He was apprehended under Section 69 of the CGST Act, 2024 for his involvement in issuing fake invoices without actual supply of goods/services, thereby availing and passing on fraudulent ITC.
Mulla, who also worked as a tax consultant, established a fictitious proprietary firm named Federal Logistics and Co. Under the guise of managing GST-related matters for multiple firms, he engaged in the manipulation of GST returns.
Furthermore, Mulla illicitly collected cash payments from his clients to fulfill monthly GST liabilities, but diverted the funds for personal gain, leading to embezzlement. He discharged GST liabilities using fake ITC, either through his own firm or other entities under his control.
Confronted with incriminating records and statements from affected clients, Mulla confessed to siphoning off cash through the forgery/editing of monthly GST returns.