CGST Delhi South Arrests Iron-Steel Firm Partner Over Rs 15.78 Crore Fake ITC Fraud:

The Central Goods and Services Tax (CGST) officers have arrested a partner of an iron and steel firm for GST fraud for fraudulently claiming input tax credit (ITC) of more than Rs 15.78 crore.

The anti-evasion branch of the CGST Delhi South Commissionerate had conducted an investigation of the firm, which unveiled that the firm had claimed ineligible ITC using invoices issued by multiple different companies that did not even exist, were non-functional, suspended or cancelled.

It was further noted that some of the suppliers did not hold genuine business activities at their registered location of business.

The Finance Ministry has stated that "CGST Delhi South Commissionerate have arrested a partner of the firm engaged in trading of iron and steel goods in a case involving fraudulent availment, utilisation and passing on of inadmissible ITC aggregating to over Rs 15.78 crore through bogus invoices of approximately Rs 87.67 crore."

When further probe was conducted, it was observed that the ITC was claimed without performing any actual movement of goods, and was also passed on to various recipients through invoices issued without corresponding supply of goods.

The accused partner was apprehended on September 14, 2026, based on the statements recorded under Section 70 of the CGST Act, 2017, and evidence collected during the course of the investigation. Thereafter, the accused was produced before the Patiala House Court. The court has remanded the accused to judicial custody for 14 days.