CGST Delhi South officers bust firm in fraudulent availment of ITC involving over Rs. 25.22 crore; proprietor arrested
CGST Delhi South Commissionerate officers arrested a firm's proprietor for fraudulently availing, utilizing, and passing on inadmissible Input Tax Credit (ITC) worth over Rs. 25.22 crore using bogus invoices totaling approximately Rs. 140.14 crore. Investigation revealed the use of invoices from non-existent or non-functional firms without any actual receipt or supply of goods. The accused was arrested on 17.09.2026 under Section 69 of the CGST Act, 2017 and remanded to 14 days of judicial custody by the Patiala House Court.
Why It Matters
This is relevant for competitive exams as it highlights enforcement actions under the CGST Act, 2017, specifically regarding tax fraud, Input Tax Credit violations, and legal provisions like Section 69 and Section 70.
In Simple Words
Officers from the CGST Delhi South Commissionerate arrested a business proprietor dealing in iron and steel goods for a tax fraud case. The suspect fraudulently claimed and passed on Input Tax Credit (ITC) exceeding Rs. 25.22 crore using fake invoices worth about Rs. 140.14 crore.
The probe showed that the firm used invoices from fake or non-functional suppliers without moving any actual goods. Following the gathered evidence and recorded statements, the accused was arrested on September 17, 2026, under Section 69 of the CGST Act and sent to 14 days of judicial custody.
Key Points
- CGST Delhi South officers arrested a firm proprietor for fraudulent ITC claims.
- The fraudulent ITC involved is over Rs. 25.22 crore.
- Bogus invoices used amounted to approximately Rs. 140.14 crore.
- The firm was engaged in the trading of iron and steel goods.
- Invoices were obtained from non-existent, non-functional, suspended, or cancelled firms.
- Statements were recorded under Section 70 of the CGST Act, 2017.
- The accused was arrested on 17.09.2026 under Section 69 of the CGST Act, 2017.
- The accused was remanded to judicial custody for 14 days by the Patiala House Court.
Exam Angle
A. Section 69 of the CGST Act, 2017
Source: Press Information Bureau