CGST Delhi Arrests Proprietor Over Fraudulent ITC Availment of Rs. 25.22 Crore :

The Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested the proprietor of a firm engaged in the trading of iron and steel goods in connection with alleged fraudulent availment, utilisation and passing on of inadmissible ITC exceeding Rs. 25.22 crore.

According to the investigation, the ITC fraud was carried out through bogus invoices aggregating approximately Rs. 140.14 crore. The department found that the firm had availed ITC on the strength of invoices issued by multiple suppliers, several of which were found to be non-existent, non-functional, suspended or cancelled. During field verification, certain suppliers were found to have no genuine business activity at their declared places of business. The investigation further revealed that the assessee allegedly availed ITC without actual receipt of goods.

Based on the evidence gathered during the investigation and statements recorded under Section 70 of the CGST Act, 2017, the proprietor was arrested on September 17, 2026 under Section 69 of the CGST Act, 2017.

The accused was thereafter produced before the Patiala House Court, which remanded him to judicial custody for 14 days.

The proceedings are presently at the investigation stage, and the further investigation in the matter is underway.