Solapur Lawyer Arrested in ₹100 Crore Fake GST Invoice Scam

The Directorate General of GST Intelligence (DGGI) has arrested Solapur-based lawyer Sajid Ahmed Sheikh for operating a fake GST racket involving over ₹100 crore through bogus invoices. Sheikh was remanded in 14-day judicial custody and sent to Kalamba Central Jail.

According to the GST intelligence wing probe, the practising lawyer had created a network of 30 shell companies using forged and bogus documents. The accused made bogus invoices without supplying any services or goods to later claim fraudulent input tax credits (ITC). A senior GST official confirmed, “The accused made bogus invoices without supplying any services and goods to later claim fraudulent input tax credits (ITC).”

Acting on specific intelligence, DGGI sleuths raided Sheikh's office in Solapur and seized his computer, mobile, and other electronic devices last week. The forensic analysis of the electronic devices led the GST Intelligence to raid another 12 shell companies operating in Solapur and arrested Sheikh for raising bogus invoices to claim ITC. The GST probe is expected to identify several traders, real estate developers, and jewellers involved in the fake GST invoice racket.

The creation of shell companies and the use of forged documents to claim fraudulent ITC is a serious offense under the GST Act. The DGGI's proactive measures in identifying and apprehending such individuals are crucial in maintaining the integrity of the tax system. The case is still under investigation, and further arrests are expected as the probe continues.

The GST Intelligence wing is a specialized unit within the Central Board of Indirect Taxes and Customs (CBIC) responsible for investigating and preventing tax evasion and fraud. Their efforts in this case highlight the importance of stringent measures to combat financial crimes and protect the interests of the government and taxpayers.

The impact of such large-scale fraud on the economy is significant, as it not only results in a loss of revenue for the government but also undermines the trust in the tax system. The DGGI's actions in this case send a strong message to potential fraudsters and demonstrate the government's commitment to maintaining a fair and transparent tax environment.