New Delhi, April 28, 2026: In a major crackdown on GST fraud, the Anti-Evasion Branch of the CGST Delhi South Commissionerate has detected fraudulent availment of Input Tax Credit (ITC) worth ₹60.59 crore through bogus invoices amounting to ₹397.23 crore. One person has been arrested in connection with the case.
According to officials, the accused is the son of a director of the beneficiary entity and was actively managing and controlling its business operations and financial transactions. Investigations revealed that he knowingly availed and utilised fake ITC through fraudulent transactions backed only by paper invoices, without any actual supply of goods or services.
The probe uncovered that a non-functional entity was being used to pass on inadmissible ITC. Verification of its registered business address showed it to be merely a co-working space, with no signs of genuine commercial activity, stock, invoices, or financial records.
Further investigation identified a smartphone trading firm as the primary beneficiary of the fraudulent scheme. Analysis of financial trails, statements, and transaction records exposed a well-organised network designed solely to defraud government revenue.
Officials stated that the offence involves deliberate violation of Section 16 and is punishable under Section 132 of the CGST Act, 2017. The accused has been arrested and remanded to judicial custody for 14 days.
The CGST Delhi South Commissionerate reaffirmed its commitment to stringent enforcement against tax evasion, emphasizing continued efforts to safeguard public revenue and ensure compliance with GST laws.
