CGST Delhi South officials arrest one company director in fraudulent availing ITC of ₹6.53 crore

CGST Delhi South officials arrest one company director in fraudulent availing ITC of ₹6.53 crore

As part of its ongoing enforcement drive against fraudulent ITC claims, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, has unearthed another significant case of tax evasion and has arrested a Director of a private limited company engaged in trading of electronic goods for fraudulent availment of Input Tax Credit (ITC) amounting to ₹6.53 crore through bogus invoices of ₹36.28 crore.

Investigation revealed that the company had availed inadmissible ITC on the basis of invoices issued by multiple firms, some of which were found to be non-existent, non-functional, or having suspended/cancelled GST registrations. Field verification conducted by jurisdictional authorities confirmed that certain suppliers were bogus entities with no genuine business activity at their declared places of business.

Further inquiry established that the ITC was availed without actual receipt of goods and was utilized for discharge of GST liability, in contravention of the provisions of the Central Goods and Services Tax Act, 2017.

Based on the evidence gathered during investigation and statements recorded, the accused was arrested under Section 69 of the CGST Act, 2017 and produced before the Duty Magistrate and has been remanded to judicial custody for 14 days.

Further the investigation is ongoing to trace the flow of funds and identify any additional beneficiaries.