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.

Fraudulent Input Tax Credit claiming exposed, triggering anti evasion probe and criminal investigation into invoice based ITC schemes. Fraudulent availing of Input Tax Credit (ITC) by a firm through invoice based claims without underlying supplies was detected by the CGST Delhi South Anti Evasion Branch; the probe found ineligible ITC passed from fictitious suppliers in violation of the CGST Act 2017, prompting criminal investigation measures based on supply chain analytics and intelligence.