BELAGAVI: Acting on specific intelligence, officials of the Preventive Unit of Central GST, Belagavi Commissionerate, busted a fake GST invoice racket of Rs 132 crore, involving fake Input Tax Credit (ITC) of Rs 23.82 crore, and arrested one accused.

The accused Naqeeb Najeeb Mulla is proprietor of Federal Logistics and Company, Belagavi. He was arrested under Section 69 of CGST Act, 2024. Mulla was involved in availing and passing on fraudulent ITC by issuing fake invoices without actual supply of goods/services.

Mulla, a tax consultant, had also created a fake proprietary firm, named Federal Logistics and Co. He was handling the filing of returns and other GST-related issues of multiple firms, and was involved in declaring the manipulated GST returns.

Mulla’s would collect cash payments from his clients for discharging monthly GST liabilities, but used the same for his personal interests, leading to embezzlement. He discharged GST liabilities utilising fake ITC passed on through his own firm or through other firms in his control.

Upon confrontation with relevant records and statements of the affected clients, Mulla admitted to siphoning off cash by forging/editing monthly GST returns.