The Anti-Evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has arrested the key persons for fraudulent availment of ineligible Input Tax Credit (ITC) amounting to approximately ₹8.52 crore through bogus invoices of ₹199.90 crore without actual receipt of goods.
Searches on January 12-13, 2026, at the principal place of business, additional sites, and residences uncovered closed/non-existent premises with minimal activity. Statements recorded under Section 70 of CGST Act 2017 revealed the proprietor’s father-controlled operations and admitted fake ITC claims.
The persons arrested i.e. proprietor and his father were found to be direct beneficiaries of this evasion. The offence is punishable under Section 132 of the CGST Act, 2017. The persons arrested were 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.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2214921®=3&lang=1
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