Summary: The Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested the proprietor of a firm trading in iron and steel goods in connection with the alleged fraudulent availment, utilisation and passing on of inadmissible Input Tax Credit (ITC). According to the PIB release, the case involves ITC exceeding Rs. 25.22 crore claimed through bogus invoices valued at approximately Rs. 140.14 crore. The investigation found that the firm had availed ITC on invoices issued by multiple entities, several of which were allegedly non-existent, non-functional, suspended or cancelled. Field verification further indicated that certain suppliers were not conducting genuine business activities at their declared places of business. The inquiry also established that the firm had allegedly availed ITC without actually receiving the underlying goods. It subsequently passed ITC to various recipients by issuing invoices without corresponding supplies of goods. On the basis of evidence collected during the investigation and statements recorded under Section 70 of the Central Goods and Services Tax Act, 2017, the accused was arrested on 17 September 2026 under Section 69 of the Act. The proprietor was produced before the Patiala House Court, which remanded him to judicial custody for 14 days. The release states that further investigation into the case remains in progress.
Ministry of Finance
CGST Delhi South officers bust firm in fraudulent availment of ITC involving over Rs. 25.22 crore; proprietor arrested
Posted On: 18 SEP 2026 2:26PM by PIB Delhi
As part of its ongoing enforcement drive against fraudulent Input Tax Credit (ITC) claims, the officers of Anti-Evasion Branch, Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested a proprietor of a firm engaged in trading of iron and steel goods in a case involving fraudulent availment, utilisation and passing on of inadmissible ITC aggregating to over Rs. 25.22 crore through bogus invoices of approximately Rs. 140.14 crore.
Investigation revealed that the firm had availed inadmissible ITC on the basis of invoices issued by multiple firms, several of which were found to be non-existent, non-functional, suspended or cancelled. Field verification also established that certain suppliers had no genuine business activity at their declared places of business.
Further inquiry established that ITC was availed without actual receipt of goods and was also passed on to various recipients through invoices issued without corresponding supply of goods.
Based on the evidence gathered during investigation and statements recorded under Section 70 of the CGST Act, 2017, the accused was arrested on 17.09.2026 under Section 69 of the CGST Act, 2017 and produced before the Patiala House Court, which remanded him to judicial custody for 14 days.
Further investigation in the case is under progress.
