CGST Unit Busts Fake Invoice Racket, Arrests Man in Belagavi
By: Admin July 12, 2024 Categories: GST Recent News
In a significant breakthrough, the Central GST unit has busted a fake GST invoice racket and arrested a man in Belagavi on Wednesday.
Details of the Racket
According to Principal Commissioner Dinesh Panagarkar, acting on specific intelligence, officers uncovered a massive operation involving the generation of fake invoices worth ₹132 crore. This scheme also included the fraudulent availing and passing of Input Tax Credit (ITC) amounting to ₹23.82 crore.
The Accused
The arrested individual, Naqeeb Najeeb Mulla, is a tax consultant and the proprietor of Federal Logistics. He has been charged with availing and passing on fraudulent ITC through the issuance of fake invoices without any actual supply of goods and services.
Modus Operandi
Mulla created a fake proprietary firm named Federal Logistics and Co. He managed GST return filings and other related issues for multiple firms, declaring manipulated GST returns. His strategy involved collecting cash payments from clients to discharge monthly GST liabilities but misappropriating these funds for personal use, leading to embezzlement. He discharged GST liabilities using fake ITC passed through his own firm or other firms under his control.
Investigation and Legal Proceedings
Upon interrogation and review of relevant records, Mulla admitted to siphoning off cash amounts by forging or editing monthly GST returns. Notably, he had previously violated GST laws in 2017. The accused was presented before the JMFC II Court in Belagavi, where the Magistrate remanded him to judicial custody for 14 days.
This case highlights the ongoing efforts by the CGST authorities to clamp down on fraudulent activities and ensure compliance with GST laws.
