The Directorate General of Goods and Services Tax Intelligence (DGGI) on Thursday apprehended a Solapur-based lawyer, Sajid Ahmed Sheikh, for allegedly orchestrating a massive fake GST invoice racket worth over ₹100 crore.
Investigations by the DGGI revealed that Sheikh had set up a complex network of 30 shell companies using counterfeit and fabricated documents. He allegedly used these fake entities to generate fake invoices for non-existent transactions to fraudulently avail of Input Tax Credit (ITC), a senior GST official confirmed. The accused was placed in judicial custody for 14 days and has been lodged in Kalamba Central Jail.
Following intelligence inputs, DGGI officers conducted a raid at Sheikh’s office in Solapur on May 22. They seized several electronic devices, including his computer and mobile phone. A forensic examination of these devices uncovered crucial evidence, prompting the agency to expand its investigation to 12 more suspected shell companies operating in the area.
Authorities believe the scam may extend to multiple stakeholders, including traders, real estate developers, and jewellers, who could be complicit in the fraudulent ITC claims. The ongoing probe aims to unearth the full extent of this elaborate tax evasion racket.
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🧾 Conclusion
The arrest of Sajid Ahmed Sheikh marks a significant breakthrough in the fight against GST fraud. The ₹100 crore fake invoice scam underscores the critical need for tighter surveillance and regulatory scrutiny in the GST framework. With the DGGI expanding its investigation, more arrests and financial recoveries are expected in the coming days.
Such incidents serve as a stern warning for businesses to maintain ethical accounting practices and avoid any involvement in fraudulent Input Tax Credit claims.
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