CGST Delhi South uncovers Rs31.95 crore fake ITC fraud, one arrested

The Central Goods and Services Tax (CGST) Delhi South Commissionerate has uncovered a large-scale case of fraudulent availing of Input Tax Credit (ITC) worth approximately Rs31.95 crore, leading to the arrest of one person, the Ministry of Finance announced on Friday.According to the ministry, the Anti-Evasion Branch of the CGST Delhi South Commissionerate initiated an investigation based on specific intelligence into a suspicious supply chain. The probe revealed that the company involved was actively engaged in availing and passing on fraudulent ITC solely on the basis of fake invoices, without any actual supply of goods or services.
“The Director of the company has been arrested for orchestrating the evasion of Goods and Services Tax (GST) amounting to about Rs31.95 crore,” the ministry stated. The arrested individual was produced before the competent judicial authority and has been remanded to 14 days of judicial custody.Further investigation found that the firm had availed and passed on ineligible ITC from fictitious and non-existent firms, in clear violation of the provisions under the CGST Act, 2017. These actions resulted in a significant loss to the exchequer and distorted fair market practices, according to information.Officials noted that this case is part of a wider crackdown on fake invoicing and fraudulent ITC claims. The CGST Delhi South Commissionerate has intensified its efforts using advanced data analytics and supply chain mapping tools to identify and prevent tax evasion, ensuring greater transparency and compliance in the GST ecosystem.