Officers of the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, have uncovered significant GST evasion during an inspection operation conducted at the premises of M/s Mariyam Scrap Dealers, located in Harihar, Davanagere. The investigation has revealed the issuance of fake invoices valued at approximately ₹ 112.00 crore, resulting in alleged fraudulent availment and utilization of Input Tax Credit (ITC) amounting to Rs. 17.14 crore.
During the inspection, Shri Mohammad Saqlain identified as the key person responsible for the operations of the said firm, was confronted with evidence collected by the department. He admitted fraudulent availment of ITC on the strength of fake bills. He also acknowledged a short-payment of GST under the reverse charge mechanism (RCM) amounting to ₹ 4.50 crore, taking the total GST evasion to ₹ 21.64 crore.
Preliminary findings revealed that the taxpayer had largely procured metal scrap from unregistered suppliers wherein ITC was not available. Additionally, most of the purchases of said firm from registered entities were found to be from non-existent or fictitious entities. M/s Mariyam Scrap Dealers layered genuine purchases from unregistered dealers with bogus ITC obtained from fictitious entities, thereby facilitating fraudulent credit flow and evasion of GST. The investigation revealed use of forged documents to obtain bogus GST registrations, with intent to issue fake invoices for commission.
In view of the above, Shri Mohammad Saqlain was arrested on 17.10.2025 under Section 69 of the CGST Act, 2017 by DGGI Belagavi Zonal Unit and produced before the Hon’ble JMFC Court, Belagavi, wherein he was remanded to 14 days of judicial custody.
Further investigation is currently underway.