GST Officers Arrest Iron-Steel Firm Partner Over Alleged Rs 15.78 Crore Fake ITC Fraud Using Bogus Invoices Worth Rs 87.67 Crore:

GST officers have arrested a partner of an iron and steel trading firm for allegedly claiming and using fake input tax credit (ITC) worth more than Rs 15.78 crore.

The investigation by the anti-evasion branch of the CGST Delhi South Commissionerate found that the firm claimed ITC using invoices from several companies. Some of these companies were found to be non-existent, inactive, suspended or had their registrations cancelled.

Officials also found that some suppliers had no genuine business activity at the addresses they had declared.

According to the Finance Ministry, the firm allegedly used bogus invoices worth around Rs 87.67 crore to fraudulently claim, use and pass on ITC of more than Rs 15.78 crore.

The investigation further found that the firm claimed ITC even though the goods had not actually been received. It also allegedly passed on the tax credit to other businesses through invoices without supplying any goods.

Based on the evidence collected and statements recorded during the investigation, the accused was arrested on September 14 under the CGST Act. He was produced before the Patiala House Court, which sent him to judicial custody for 14 days.