The Anti-Evasion Branch of the CGST Delhi South Commissionerate recently investigated and detained the Director of a firm for orchestrating a significant case of fraudulent Input Tax Credit (ITC) evasion amounting to approximately Rs. 31.95 crore. The investigation, initiated based on specific intelligence, revealed that the company was engaged in a scheme to avail and pass on ineligible ITC using invoices without any actual supply of goods or services. This activity constitutes a violation of the CGST Act, 2017, and is part of a wider effort by the Commissionerate to utilize data analytics and supply chain mapping to identify and disrupt fraudulent activities that cause substantial revenue loss. The arrested Director has been placed in 14-day judicial custody following the action.
Ministry of Finance
CGST Delhi South Commissionerate busts a case of fraudulently availing of Input Tax Credit (ITC) of around Rs. 31.95 crore by a firm; one arrested
Posted On: 31 OCT 2025
The Anti-Evasion Branch of CGST Delhi South Commissionerate has unearthed a large-scale case of fraudulently availing Input Tax Credit (ITC). Director of the company has been arrested for orchestrating the evasion of Goods and Services Tax (GST) of approximately Rs. 31.95 crore and produced before the competent judicial authority, which has remanded him to judicial custody of 14 days. The investigation revealed that the company is actively engaged in availing fraudulent Input Tax Credit solely on the basis of invoices without any underlying supply of goods or services.
Acting on specific intelligence developed by the Anti-Evasion wing, an investigation was initiated into a suspicious supply chain. The inquiry revealed that the firm had fraudulently availed ITC without any actual movement of goods. Further investigation established that the firm had availed and pass on ineligible ITC from fictitious and non-existent firms, in gross violation of the provisions of the CGST Act 2017.
This case forms part of the broader initiative undertaken by the CGST Delhi South Commissionerate to unearthed fraud ITC case that lead to significant revenue leakage and undermine fair market practices. The department is leveraging data analytics and supply chain mapping tools to proactively identify and disrupt such fraudulent activities.
