On 22 April 2026, the Enforcement Wing (South Zone) of the Commercial Taxes Department, Government of Karnataka, arrested Mohammed Tauqeer in Bengaluru. He is alleged to be one of the masterminds of an inter-state fake Input Tax Credit fraud network valued at ₹410 crore, with wrongful ITC claims estimated at ₹102.5 crore.
Input Tax Credit under GST
Input Tax Credit, or ITC, is a GST mechanism that allows a registered taxpayer to reduce output tax liability by claiming credit for tax paid on inputs, input services, and capital goods. Under the Central Goods and Services Tax Act, 2017, ITC is linked to tax invoices, receipt of goods or services, and payment of tax by the supplier.
Fake Invoicing and Bogus Firms
- Fake invoicing refers to the issue of tax invoices without actual supply of goods or services.
- Bogus firms are non-genuine business entities created to generate invoices, claim ITC, or move funds through layered transactions.
- The alleged network used multiple firms, repeated GST registration cancellations, and changes in mobile numbers and bank accounts.
Inter-State GST Fraud Pattern
The alleged transactions involved Karnataka, Andhra Pradesh, and Tamil Nadu. The accused are natives of Chittoor in Andhra Pradesh, and Shaik Jakeer Hussain alias Basha remains absconding.
Legal and Enforcement Context
The Special Court for Economic Offences in Bengaluru remanded Mohammed Tauqeer to 14 days of judicial custody on 22 April 2026. GST fraud cases in India are investigated under the CGST Act, 2017, and related provisions of the Indian Penal Code and the Bharatiya Nyaya Sanhita in cases involving forgery or cheating. GST was introduced in India on 1 July 2017 as a destination-based indirect tax. The GST framework has Central GST, State GST, Integrated GST, and Union Territory GST components.
Last Modified: April 23, 2026