The Directorate General of GST Intelligence (DGGI) recently apprehended Sajid Ahmed Sheikh, a lawyer based in Solapur, on allegations of masterminding a large-scale fake GST invoice scam valued at over Rs. 100 crore. According to investigations conducted by the DGGI, Sheikh, who is a practicing advocate, established a sophisticated network consisting of 30 shell companies. These companies were created using counterfeit and fabricated documents, and they were reportedly employed to generate fake invoices for non-existent transactions. This scheme was designed to fraudulently claim Input Tax Credit (ITC), a senior official from the GST department confirmed.
Following his arrest, Sheikh was placed under judicial custody for 14 days and is currently held at Kalamba Central Jail. The arrest came after intelligence inputs prompted the DGGI officers to conduct a thorough raid at Sheikh’s office in Solapur. During this raid, the officers seized multiple electronic devices, including his computer and mobile phone. A forensic analysis of these devices yielded significant evidence, which has led the agency to broaden its investigation to include 12 additional suspected shell companies operating within the region.
Got a GST ITC Notice? Read This Before You Reply – Click Here
Authorities suspect that the scope of this fraudulent operation extends beyond Sheikh and may involve various stakeholders, such as traders, real estate developers, and jewellers. These parties could potentially be complicit in the fake ITC claims linked to the scam. The ongoing investigation aims to uncover the full magnitude of the elaborate tax evasion racket and bring all involved parties to justice.
The investigation continues as officials work to dismantle the network of shell companies and expose the broader nexus behind this significant GST fraud.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
