The Directorate General of GST Intelligence (DGGI) has arrested 24-year-old Mohammed Kamran, accused of masterminding a fraudulent input tax credit (ITC) scheme worth over ₹419 crore. Kamran, a resident of Bannimantap Layout in Mysuru, was intercepted at Kempegowda International Airport after arriving from Mumbai. Officials seized six mobile phones and a laptop from his possession.
His father, Akram Pasha, also under investigation, remains absconding. Authorities said both men fled shortly after raids were conducted on September 10.
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Raids Uncover Shell Firms
According to investigators, coordinated raids across 13 locations — three in Bengaluru and 10 in Mysuru — exposed a network of interlinked entities suspected of generating fake invoices to fraudulently claim GST credits. These firms reportedly operated without any real supply of goods or services, a hallmark of ITC fraud.
The modus operandi allowed the accused to inflate input tax credit, thereby reducing tax liability and siphoning off revenue meant for the exchequer. Warehouses, offices, and residences linked to the accused were searched, revealing documents and digital records under scrutiny.
Recurring GST Fraud Across India
Officials noted that the case is part of a larger national trend. Since the introduction of GST in 2017, fraudulent ITC claims have plagued enforcement agencies. Government data from 2022 to 2024 indicates thousands of crores lost due to such practices. Fake companies often exist only on paper, exploiting loopholes in compliance mechanisms.
Experts caution that beyond revenue loss, these scams distort fair competition by allowing fraudulent firms to undercut genuine businesses. “This is not merely about enforcement,” said a senior tax analyst. “It exposes the structural weakness between digital reporting requirements and ground realities.”
Further Action Expected
Authorities believe Kamran and Pasha operated a wider network of shell firms and suspect more arrests are imminent. With investigators now mapping the flow of funds, the case could reveal one of the largest ITC fraud networks uncovered in Karnataka.
The arrest highlights the urgent need for tighter compliance checks and stronger monitoring of GST credit claims to curb recurring large-scale tax frauds.