Delhi: CGST Busts ₹25.22 Crore Fake ITC Scam, Company Owner Arrested
Officials from CGST Delhi South have arrested the owner of an iron and steel company for defrauding the government through fake Input Tax Credit (ITC).
The anti-tax evasion wing of the Office of the Commissioner of Central Goods and Services Tax (CGST) Delhi South has carried out a major operation as part of an ongoing campaign against fraudulent Input Tax Credit (ITC) claims. During this action, the owner of a company involved in the iron and steel trade was arrested.
The case involves the fraudulent availing, utilization, and transfer of invalid ITC exceeding ₹25.22 crore through fake invoices totaling approximately ₹140.14 crore. Investigations revealed that the company claimed ITC benefits based on bills issued by several firms that were found to be either non-existent, inactive, suspended, or canceled.
Ground-level verification conducted by officials revealed that some of the suppliers had no actual business activity at their declared business premises. The investigation further clarified that ITC was availed without the actual receipt of any goods, and these credits were transferred to various recipients via invoices without any physical supply of materials.
Based on statements recorded under Section 70 of the CGST Act, 2017, and the evidence collected, the accused was arrested on September 17, 2026, under Section 69 of the Act. The accused was produced before the Patiala House Court, which has remanded the individual to 14 days of judicial custody. Further investigation into the matter is ongoing.