In a significant crackdown, officials from the Preventive Unit of the Central GST in the Belagavi Commissionerate have dismantled a fraudulent GST invoice operation valued at Rs132 crore. The scheme involved a fabricated Input Tax Credit (ITC) amounting to Rs23.82 crore. One individual has been arrested in connection with this case.
The accused, Naqeeb Najeeb Mulla, is the proprietor of Federal Logistics and Company based in Belagavi. He was apprehended under Section 69 of the CGST Act, 2024, for his role in obtaining and disseminating fraudulent ITC through the issuance of fake invoices, all without the legitimate supply of goods or services.
Mulla, who also works as a tax consultant, created a fictitious entity named Federal Logistics and Co. He managed the filing of GST returns and related matters for multiple businesses, manipulating their GST submissions for personal gain.
Mulla collected cash payments from clients for their monthly GST obligations but misappropriated these funds for his personal interests, resulting in significant embezzlement. He utilized fake ITC generated through his own company and other firms he controlled to settle these tax liabilities.
When confronted with pertinent records and statements from affected clients, Mulla confessed to diverting cash by altering monthly GST returns.