CGST unit busts fake invoice racket, arrests man in Belagavi

Published - July 10, 2024 09:39 pm IST - Belagavi

A team of officers from the Central GST unit busted a fake GST invoice racket and arrested a man in Belagavi on Wednesday.

In a release here, Principal Commissioner, CGST, Dinesh Panagarkar has said that acting on specific intelligence, the team uncovered the racket of generating fake invoices to the tune of ₹132 crore involving fake input tax credit of ₹23.82 crore.

The team arrested a tax consultant Naqeeb Najeeb Mulla, proprietor of Federal Logistics. He faces the charge of involvement in availing and passing on fraudulent Input Tax Credit by way of issuance of fake invoices without actual supply of goods and services.

Officers say that he created a fake proprietary firm named as Federal Logistics and Co. He was handling the filing of returns and other GST related issues of multiple firms and is involved in declaring the manipulated GST Returns.

His modus operandi was to collect cash payments from his clients for discharging monthly GST liabilities but used the same for his own personal interests leading to embezzlement.

Further, he discharged the GST liabilities utilising fake ITC passed on through his own firm or through other firms in his control.

Upon interrogation and confrontation with relevant records, Mulla admitted to siphoning off cash amounts by forging or editing monthly GST Returns. He was found to have violated some provisions of the GST law in 2017 also.

The accused was presented before the JMFC II Court, Belagavi, and the Magistrate has remanded him to judicial custody for 14 days, said the release.

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