Enforcement agencies struck gold in Karnataka, dismantling a 593 crore fake Input Tax Credit scheme run by GST practitioner Mohammad Saifullah. The Bengaluru arrest unravels a nexus of shell companies peddling phantom invoices.
Saifullah managed fake GSTINs, issuing e-way bills for imaginary supplies and collecting cuts per bill. This fueled 235 crore in illicit ITC claims across the chain.
A suspicious entry point led to Bengaluru raids on Star Tax Consultant hubs, exposing the syndicate’s blueprint. No real commerce—just paper trails for profit.
He leveraged accounting apps to simulate activity in dormant shells. Hard evidence extracted a confession, culminating in CGST Section 69 arrest on February 24.
From special court transit approval to Belagavi remand, judicial efficiency aided momentum. The custody phase will yield more intel.
DGGI’s wide-net investigation targets downstream claimants, vowing to quantify total damage. The scam’s anatomy reveals GST system’s pressure points.
Amid rising e-invoicing mandates, such busts affirm tech’s dual role: enabler for crooks, weapon for watchdogs.
For taxpayers, vigilance is vital—cross-check vendors to sidestep complicity. This saga pressures regulators for practitioner audits.
Ultimately, it fortifies GST’s foundation, curbing leakages and promoting fair play in India’s economic engine.