The Anti-Evasion Branch of the Central Goods and Services Tax (CGST), Delhi South Commissionerate, has arrested a director of a private limited company engaged in trading electronic goods for allegedly fraudulently availing Input Tax Credit (ITC) of ₹6.53 crore. The ITC was claimed on the basis of bogus invoices amounting to ₹36.28 crore issued by multiple firms, some of which were found to be non-existent, non-functional, or having suspended or cancelled GST registrations.
The Anti-Evasion Branch of the Central Goods and Services Tax (CGST), Delhi South Commissionerate, has arrested a director of a private limited company engaged in trading electronic goods for allegedly fraudulently availing Input Tax Credit (ITC) of ₹6.53 crore. The ITC was claimed on the basis of bogus invoices amounting to ₹36.28 crore issued by multiple firms, some of which were found to be non-existent, non-functional, or having suspended or cancelled GST registrations. Field verification confirmed that certain suppliers were fake entities with no genuine business activity at their declared premises. The investigation revealed that the ITC was availed without actual receipt of goods and was used to discharge GST liability, in violation of the Central Goods and Services Tax Act, 2017. The accused was arrested under Section 69 of the CGST Act and produced before the Duty Magistrate, who remanded him to judicial custody for 14 days. Further investigation is ongoing.
Ministry of Finance
CGST Delhi South officials arrest one company director in fraudulent availing ITC of ₹6.53 crore
Posted On: 13 FEB 2026
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.
Further the investigation is ongoing to trace the flow of funds and identify any additional beneficiaries.