CGST Delhi South Unearths Rs. 8.25 Crore Fake ITC Racket, Two Arrested and Sent to Custody

The Anti-Evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has arrested two individuals in the case of claiming bogus ITC (Input Tax Credit) of about 8.25 crore using fraudulent invoices amounting to Rs. 199.90 crore without actual movement of any goods or services.

This action was taken following a search operation conducted between January 12 and 13, 2026, at the principal place of business, additional sites, and residences, which uncovered closed/non-existent premises with minimal activity. The authority recorded a statement under Section 70 of the CGST Act 2017, which unearthed that operations were controlled by the owner’s father and accepted that fake ITC was claimed by them.

During the investigation, the owner and his father were discovered to be guilty of tax evasion. In conclusion, the CGST Delhi South Commissionerate arrested them both. The offence committed by them is covered under Section 132 of the CGST Act, 2017. Subsequent to the arrest, the two accused were produced before the Duty Magistrate, and now they have been sent back to judicial custody for 14 days.

The case is still ongoing to uncover details of additional individuals connected to the case.