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.

Input tax credit fraud exposed; director arrested after probe finds bogus suppliers and inadmissible credits used to discharge tax liabilities. Investigation by the Anti Evasion Branch found that the company availed inadmissible Input Tax Credit on the basis of invoices from bogus or non functional suppliers, and without actual receipt of goods, using those credits to discharge GST liabilities in contravention of the Central Goods and Services Tax Act, 2017; a company director was arrested and remanded while the probe to trace fund flows and other beneficiaries continues.