The CGST Delhi South Commissionerate has uncovered a case of fraudulently availing Input Tax Credit (ITC) of approximately Rs. 31.95 crore by a firm. The director of the company has been arrested and remanded to judicial custody for 14 days. The investigation revealed the company was fraudulently availing ITC based on invoices without any underlying supply of goods or services, and passing on ineligible ITC from fictitious firms, violating the CGST Act 2017. The department initiated the investigation on specific intelligence and is using data analytics and supply chain mapping to identify and disrupt fraudulent activities.
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Posted On: 31 OCT 2025 3:00PM by PIB Delhi
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Key Entities Referenced
Input Tax Credit (ITC): Tax credit mechanism allowing businesses to reduce their tax liability by the amount of tax already paid on inputs.
CGST Act 2017: Central Goods and Services Tax Act, the main legislation governing GST in India.
CGST Delhi South Commissionerate: The specific commissionerate responsible for investigating the case of fraudulent ITC availment.
Goods and Services Tax (GST): An indirect tax levied on the supply of goods and services.
Ministry of Finance: The ministry that oversees government finances
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 3:00PM by PIB Delhi
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.
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