The Anti-Evasion Branch of Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested the proprietor of a firm trading iron and steel goods for fraudulent availment, utilization, and passing on of inadmissible Input Tax Credit (ITC) totaling over Rs. 25.22 crore. The fraud was executed through bogus invoices amounting to approximately Rs. 140.14 crore issued by multiple firms that were found to be non-existent, non-functional, suspended, or cancelled during investigation.
Field verification established that certain suppliers had no genuine business activity at their declared places of business. Further inquiry confirmed that ITC was availed without actual receipt of goods and subsequently passed on to various recipients through invoices issued without corresponding supply of goods.
Based on evidence gathered during investigation and statements recorded under Section 70 of the CGST Act, 2017, the accused was arrested on September 17, 2026, under Section 69 of the CGST Act. The Patiala House Court remanded him to judicial custody for 14 days. Further investigation in the case is currently underway.