Belagavi
A major case of Goods and Services Tax (GST) fraud has been uncovered by the Directorate General of GST Intelligence (DGGI), Belagavi Zonal Unit. The scam, involving fake invoices and illegal tax claims, amounts to a total evasion of ₹21.64 crore.
The investigation was carried out at the premises of M/s Mariyam Scrap Dealers, located in Harihar, Davanagere. Officials found that the firm had issued fake invoices worth around ₹112 crore to wrongfully claim Input Tax Credit (ITC) of ₹17.14 crore.
Mohammad Saqlain, identified as the main person running the firm, admitted to using fake bills to claim this credit. He also admitted to not paying ₹4.50 crore in GST under the Reverse Charge Mechanism (RCM). This brought the total fraud to ₹21.64 crore.
The DGGI team discovered that most of the scrap metal purchased by the firm came from unregistered suppliers, meaning no ITC could be claimed on them. To hide this, the firm allegedly created fake purchase records from fake or non-existent businesses to illegally claim ITC.
The firm also used forged documents to get fake GST registrations. These registrations were then used to issue fake invoices and earn illegal commissions by passing on bogus tax credits.
Following the inspection and admission of guilt, Mohammad Saqlain was arrested by DGGI officials on October 17, 2025, under Section 69 of the CGST Act, 2017. He was presented before the Judicial Magistrate First Class (JMFC) Court in Belagavi and has been remanded to 14 days of judicial custody.
The DGGI continues its investigation and is likely to identify more persons involved in this fake billing network in the coming days. Authorities have warned businesses to avoid similar frauds or face strict legal action.