New Delhi, Feb 13: Officials of the Central Goods and Services Tax (CGST), Delhi South Commissionerate, have arrested a director of a private limited company for allegedly fraudulently availing Input Tax Credit (ITC) worth ₹6.53 crore using bogus invoices amounting to ₹36.28 crore.
The arrest was made by the Anti-Evasion Branch as part of an ongoing enforcement drive against fake ITC claims.
According to officials, the company, engaged in trading electronic goods, availed inadmissible ITC on the basis of invoices issued by multiple firms, some of which were found to be non-existent, non-functional or operating with suspended or cancelled GST registrations.
Field verification by jurisdictional authorities revealed that several supplier firms were bogus entities with no genuine business activity at their declared addresses.
Investigators found that the ITC had been claimed without actual receipt of goods and was subsequently used to discharge GST liabilities, in violation of provisions of the Central Goods and Services Tax Act, 2017.
Based on documentary evidence and statements recorded during the probe, the accused was arrested under Section 69 of the CGST Act. The individual was produced before the Duty Magistrate and remanded to judicial custody for 14 days.
Officials said further investigation is underway to trace the flow of funds and identify other possible beneficiaries involved in the alleged tax evasion network.
