Date: 2026-04-28Category: Press ReleaseState: Union GovernmentCountry: India
CGST Delhi South Commissionerate detects fraudulent availment of Input Tax Credit (ITC) of around ₹60.59 crore through bogus invoices valued at ₹397.23 crore; one arrested
**Summary of CGST Delhi South Commissionerate Enforcement Action**
The Anti-Evasion Branch of the CGST Delhi South Commissionerate, under the Ministry of Finance, has uncovered a significant GST fraud involving the fraudulent availment and utilization of Input Tax Credit (ITC).
**Key Metrics and Financial Data:**
* **Total Fraudulent ITC Detected:** Approximately ₹60.59 crore.
* **Value of Bogus Invoices:** ₹397.23 crore.
* **Remand Period:** The accused has been remanded to judicial custody for 14 days.
**Investigation Findings:**
The investigation revealed a non-functional entity that passed inadmissible ITC without any actual supply of goods or services. Verification of the entity’s declared place of business confirmed the premises was a co-working space lacking stock, invoices, financial records, or evidence of genuine commercial activity. A further probe identified a smartphone trading entity as the principal beneficiary of the fraudulent scheme.
**Legal Action and Arrest:**
The son of the director of the beneficiary entity, who was found to be controlling business operations and financial transactions, was arrested for knowingly utilizing fake ITC through paper-only transactions. The investigation established a deliberate contravention of Section 16 of the CGST Act, 2017, an offense punishable under Section 132 of the same Act.
**Administrative Details:**
* **Authority:** CGST Delhi South Commissionerate, Ministry of Finance.
* **Date of Report:** April 28, 2026.
* **Release ID:** 2256404.
* **Source:** PIB Delhi.
Key Entities Referenced
CGST Act, 2017: The primary legislation governing central goods and services tax, under which the accused was charged for contravening Section 16 and penalized under Section 132.
Input Tax Credit (ITC): The tax mechanism involving a credit for taxes paid on inputs, which was fraudulently claimed through bogus invoices valued at ₹397.23 crore.
CGST Delhi South Commissionerate: The specific enforcement authority and field formation under the Ministry of Finance that detected the fraud and executed the arrest.
Ministry of Finance
CGST Delhi South Commissionerate detects
fraudulent availment of Input Tax Credit (ITC) of
around ₹60.59 crore through bogus invoices
valued at ₹397.23 crore; one arrested
Posted On: 28 APR 2026 9:02PM by PIB Delhi
In another significant enforcement action against GST fraud, the Anti-Evasion Branch of CGST Delhi
South Commissionerate has arrested the son of a director of the beneficiary entity in a major case
involving fraudulent availment and utilisation of Input Tax Credit (ITC) of ₹60.59 crore through bogus
invoices valued at ₹397.23 crore.
Investigation revealed that a non-functional entity was engaged in the fraudulent passing of inadmissible
ITC without any actual supply of goods or services. Verification of its declared place of business
established that the premises was merely a co-working space, with no evidence of genuine commercial
activity, stock, invoices, or financial records. Further probe identified another entity engaged in
smartphone trading as the principal beneficiary of the fraudulent scheme.
The son of the director of the beneficiary entity, who was actively managing and controlling its business
operations and financial transactions, was found to have knowingly availed and utilised fake ITC through
fraudulent transactions supported solely by paper invoices. Examination of statements, financial trails, and
transactional records exposed a carefully orchestrated network designed exclusively to defraud
government revenue.
The offence, involving deliberate contravention of Section 16 and punishable under Section 132 of the
CGST Act, 2017, led to the arrest of the accused, who has been remanded to judicial custody for 14 days.
CGST Delhi South Commissionerate remains steadfast in its crackdown on tax evasion, ensuring strict
compliance and safeguarding public revenue through robust enforcement action.
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