In a major crackdown on GST fraud, officers of the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit, have unearthed a massive fake Input Tax Credit (ITC) racket involving the use of fraudulent invoices worth approximately ₹593 crore. The action followed an investigation into a suspicious GST registration, which led to multiple search operations at premises linked to M/s Star Tax Consultant in Bengaluru.
The searches exposed a well-organized 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 investigation revealed that numerous GST registrations were being operated by the accused solely for generating bogus invoices and e-way bills to facilitate fraudulent ITC claims by ultimate beneficiaries. The accused systematically used online accounting software to record and monitor transactions routed through several shell entities with no genuine business activity.
Mohammad Saifullah, a registered GST practitioner identified as the mastermind of the operation, was found to be actively managing multiple non-existent and shell GSTINs and orchestrating the issuance of fake invoices and e-way bills in exchange for commission calculated as a percentage of invoice value. Upon being confronted with incriminating evidence, he admitted to his role in the fraudulent scheme.
Mohammad Saifullah was arrested on 24.02.2026 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.
He was subsequently presented before the Hon’ble JMFC-IV Court, Belagavi, and has been remanded to judicial custody. Further investigation is underway to identify additional beneficiaries and to quantify the full extent of the fraud.