CGST Delhi Unearths Large-Scale GST Evasion Case Worth Rs. 31.95 Crore; Key Accused Arrested

The Anti-Evasion Branch of CGST Delhi South Commissionerate has recently uncovered a large-scale case of fraudulently claiming ITC (Input Tax Credit) worth Rs. 31.95 crore. The director of the company, who masterminded the GST (Goods and Services Tax) evasion worth approximately Rs. 31.95 Crore, has been arrested and is currently under the judicial custody of 14 days.

The probe exposed that the company was actively involved in claiming bogus Input Tax Credit (ITC) completely on the basis of invoices without any underlying supply of goods or services.

Based on specific information collected by the Anti-Evasion team, an investigation was begun into a suspicious supply chain. It was discovered that the company had wrongly claimed Input Tax Credit (ITC) without any actual movement of real goods. Further probes uncovered that the company had taken and passed on fake ITC from shell firms, which is a serious violation of the provisions of the GST rules under the CGST Act, 2017.

The present case is a part of a broader initiative begun by the CGST Delhi South Commissionerate to uncover fake ITC frauds that cause big losses to the revenue of the government and disturb fair business practices. The department is utilising data analysis and supply chain mapping tools to discover and curb such fraud.