Date: 2025-08-07Category: Not ApplicableState: Union GovernmentCountry: India
Central Goods & Services Tax (CGST) Delhi South Commissionerate detects evasion of Goods and Services Tax (GST) of ₹16.30 crore in three firms; one held
**Summary:**
The Anti-evasion Branch of the Central Goods Services Tax (CGST) Delhi South Commissionerate has detected Goods and Services Tax (GST) evasion of approximately ₹16.30 crore across three closely linked firms involved in manpower supply and facility management services. An individual, identified as the common director and controlling person of the three entities, has been arrested for allegedly orchestrating the scheme. The investigation revealed a consistent pattern of underreporting GST liabilities over multiple financial years. The companies collected GST from clients on outward supplies but failed to remit the corresponding tax to the government, diverting the funds in violation of the CGST Act, 2017. The offense falls under Section 132(1)(d) and is punishable under Section 132(1)(i) of the CGST Act, 2017. Given the evasion amount exceeding ₹5 crore, the offense is cognizable and non-bailable under Section 132(5) of the Act. The arrested individual has been remanded to 14 days of judicial custody. The investigation is ongoing to trace the flow of funds and identify any additional beneficiaries. This release was issued by PIB Delhi on August 7, 2025, at 6:32 PM, with Release ID: 2153757.
Key Entities Referenced
Ministry of Finance: The ministry of the Government of India responsible for financial matters.
Central Goods Services Tax: A tax levied on the supply of goods and services in India.
CGST Act, 2017: The Central Goods and Services Tax Act enacted in 2017 in India.
Delhi South Commissionerate: A regional administrative division responsible for CGST in the southern part of Delhi.
Goods and Services Tax: An indirect tax used in India on the supply of goods and services.
Delhi: The National Capital Territory of Delhi, India, where the CGST evasion was detected.
Section 1321d: A section of the CGST Act, 2017, that covers the offence committed.
Section 1321i: A section of the CGST Act, 2017, that specifies the punishment for the offence.
Ministry of Finance
Central Goods & Services Tax (CGST) Delhi South
Commissionerate detects evasion of Goods and
Services Tax (GST) of 16.30 crore in three firms; one
held
Posted On: 07 AUG 2025 6:32PM by PIB Delhi
The Anti-evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has
arrested a key individual for orchestrating the evasion of Goods and Services Tax (GST) of approximately
₹16.30 crore. The arrest follows detailed analysis of GST return data.
The investigation revealed that three closely linked companies, engaged in manpower supply and facility
management services, were consistently under-reporting their GST liabilities over multiple financial years.
These entities had declared outward supplies and collected GST from clients. However, they failed to
discharge the corresponding tax liabilities. The differential tax collected but not paid to the government was
diverted in clear violation of the CGST Act, 2017.
The person arrested was found to be the common director and controlling person in all three entities and
admitted to the tax evasion during the investigation. The offence is covered under Section 132(1)(d) and is
punishable under Section 132(1)(i) of the CGST Act, 2017. Given that the quantum of evasion exceeds ₹5
crore, the offence is cognizable and non-bailable under Section 132(5) of the Act. The person arrested was
produced before the Duty Magistrate and has been remanded to judicial custody for 14 days.
The investigation is ongoing to trace the flow of funds and identify any additional beneficiaries.
****
NB/KMN
(Release ID: 2153757)