The Anti-Evasion Branch of the CGST Delhi South Commissionerate has arrested a director of a private limited company for allegedly availing Input Tax Credit (ITC) amounting to Rs. 6.53 crore.
According to a statement issued by Press Information Bureau, the company, engaged in trading electronic goods, fraudulently availed ITC on the strength of bogus invoices worth ₹36.28 crore. The investigation revealed that the firm had claimed credit based on invoices issued by multiple entities, several of which were found to be non-existent, non-functional, or operating with suspended or cancelled GST registrations.
Field verification conducted by jurisdictional authorities confirmed that certain suppliers had no genuine business activity at their declared places of business, indicating the creation of shell entities for the purpose of passing on fraudulent ITC.
Officials further established that the company had availed ITC without actual receipt of goods and utilised the credit to discharge its GST liability, in violation of the provisions of the Central Goods and Services Tax Act, 2017.
Based on the evidence gathered and statements recorded during the course of the investigation, the accused director was arrested under Section 69 of the CGST Act and produced before the Duty Magistrate. The court has remanded the accused to judicial custody for 14 days.
Authorities stated that further investigation is underway to trace the flow of funds and identify additional beneficiaries involved in the alleged tax evasion network.
The action forms part of an ongoing enforcement drive by CGST authorities in Delhi to curb fraudulent ITC claims and safeguard government revenue.
Read More: Telecom Spectrum Can’t Be Restructured Under IBC: Supreme Court
