DGGI Belagavi Unearths ₹593 Crore Fake Invoice Racket; GST Practitioner Arrested in Bengaluru
Bengaluru / Belagavi: In a major crackdown on GST evasion, the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, has unearthed a large-scale fake Input Tax Credit (ITC) racket involving fraudulent invoices worth approximately ₹593 crore.
The action followed scrutiny of a suspicious GST registration, which led to multiple search operations at premises linked to M/s Star Tax Consultant in Bengaluru. Investigators uncovered 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 ₹235 crore.
Preliminary findings revealed that several GST registrations were allegedly operated solely for generating bogus invoices and e-way bills to facilitate fraudulent ITC claims by ultimate beneficiaries. The accused reportedly used online accounting software to systematically record and track transactions routed through multiple shell entities that had no genuine business activity.
According to officials, Mohammad Saifullah, a registered GST practitioner, has been identified as the mastermind behind the operation. He was allegedly managing numerous non-existent and shell GSTINs and orchestrating the issuance of fake invoices and e-way bills in return for commissions calculated as a percentage of invoice values. Officials stated that upon confrontation with documentary and digital evidence, he admitted to his involvement in the scheme.
Saifullah was arrested on February 24, 2026, in Bengaluru under Section 69 of the CGST Act, 2017. He was produced before the Special Court for Economic Offences, Bengaluru, which granted transit remand for his transfer to Belagavi. Subsequently, he was presented before the JMFC-IV Court, Belagavi, and remanded to judicial custody.
Officials confirmed that further investigation is underway to identify additional beneficiaries and to determine the full extent of the financial impact of the fraud.
The case marks one of the significant GST intelligence operations in Karnataka in recent times, highlighting intensified enforcement against fake ITC networks and shell firm-based tax evasion.
ಇದನ್ನೂ ಓದಿ: ₹593 ಕೋಟಿ ಜಿಎಸ್ಟಿ ನಕಲಿ ಬಿಲ್ ಹಗರಣೆ ಭೇದ: ಬೆಂಗಳೂರಿನಲ್ಲಿ ಮಾಸ್ಟರ್ಮೈಂಡ್ ಬಂಧನ
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