Solapur Lawyer Booked for ₹100 Cr Fake GST ITC Scam
This high-profile case has exposed deeper loopholes in GST compliance and misuse of legal credentials.
What Is Fake GST ITC?
Fake Input Tax Credit (ITC) refers to the wrongful claim of credit without actual supply of goods or services.
- Creating fake invoices
- Using shell companies (companies with no real business activity)
- Layering transactions to make them look legitimate
GST Law Breach:
Under Section 132 of the CGST Act, availing fraudulent ITC is a cognizable and non-bailable offence if the amount involved exceeds ₹5 crore.
Case Summary: Solapur GST ITC Scam
| Particulars | Details |
|---|---|
| Accused | Practicing lawyer from Solapur |
| Scam Amount | ₹100 Crore |
| Modus Operandi | Created multiple shell companies |
| Type of Offence | Issuance of fake invoices |
| Investigation Agency | CGST Pune Zone + DGGI |
| Applicable Section | CGST Act Section 132(1)(b)/(c) |
How the Shell Companies Were Used
The accused floated over 12 fake entities, issuing invoices without supply of goods, allowing beneficiaries to:
- Claim bogus ITC
- Reduce GST liability fraudulently
- Rotate funds through hawala-like channels
Legal Reference: Section 132 of CGST Act
Here’s what makes this case legally critical:
- Section 132(1)(b): Fraudulently availing ITC on invoices without supply
- Section 132(1)(c): Issuing invoices without supply
CBIC & DGGI’s Ongoing Crackdown
CBIC has intensified its nationwide GST intelligence drive. Aided by:
- AI-based invoice matching tools
- Data triangulation using PAN, GSTIN, Aadhaar
- Field verification and geo-tagging
This case adds to a string of similar crackdowns across India.
Expert View: What Taxpayers Must Learn
“The Solapur case shows how GST compliance can be misused by educated professionals. Businesses must avoid shortcuts and verify supplier credentials through GSTN portal.”
— CA Rajiv Mehta, GST Consultant
Practical Checklist for Businesses
Before claiming ITC, ensure the following:
✅ Supplier has valid GST registration
✅ Invoice is uploaded in GSTR-1
✅ Payment made within 180 days
✅ Invoice not flagged by GSTN AI tools
Why This Matters for Professionals
- Aid in setting up fake entities
- Help draft bogus agreements or invoices
- Act as directors or authorized signatories knowingly
Summary
A Solapur-based lawyer was arrested for a ₹100 crore fake GST ITC scam involving shell companies and fake invoices. Authorities booked the accused under Section 132 of the CGST Act. Businesses are advised to verify every GST transaction to avoid legal consequences.
Frequently Asked Questions (FAQs)
Q1. Is fake ITC a criminal offence under GST?
Yes. If the amount exceeds ₹5 crore, it’s a non-bailable offence under CGST Section 132.
Q2. Can professionals be prosecuted for aiding GST fraud?
Yes. Anyone knowingly assisting in tax fraud, including professionals, can face legal action.
Q3. How can I verify if a GSTIN is fake?
Visit the GST Portal → “Search Taxpayer” → Enter GSTIN.