The Anti-Evasion Branch of the CGST Delhi
South Commissionerate has busted a major case of fraudulent Input Tax
Credit (ITC) availing, amounting to approximately ₹31.95 crore.
The Director of the firm
involved has been arrested
for orchestrating the tax evasion scheme and produced before the competent judicial authority,
which remanded him to 14
days of judicial custody.
Investigations revealed
that the company availed
ITC based solely on fake invoices without any actual supply of goods or services.
Further probe established that the firm had received and passed on ineligible ITC
sourced from fictitious
and non-existent entities, in clear violation of the CGST Act, 2017.
The case is part of an
ongoing drive by the CGST
Delhi South Commissionerate to detect and curb fake ITC networks that
cause significant revenue
loss and distort fair
market competition. The department continues to leverage data analytics and supply chain mapping
tools to proactively identify and disrupt such fraudulent
activities.
The
Anti-Evasion Branch of CGST Delhi South Commissionerate has unearthed a
large-scale case of fraudulently availing Input Tax Credit (ITC). Director of
the company has been arrested for orchestrating the evasion of Goods and
Services Tax (GST) of approximately Rs. 31.95 crore and produced before the
competent judicial authority, which has remanded him to judicial custody of 14
days. The investigation revealed that the company is actively engaged in
availing fraudulent Input Tax Credit solely on the basis of invoices without
any underlying supply of goods or services.
Acting
on specific intelligence developed by the Anti-Evasion wing, an investigation
was initiated into a suspicious supply chain. The inquiry revealed that the
firm had fraudulently availed ITC without any actual movement of goods. Further
investigation established that the firm had availed and pass on ineligible ITC
from fictitious and non-existent firms, in gross violation of the provisions of
the CGST Act 2017.
This
case forms part of the broader initiative undertaken by the CGST Delhi South
Commissionerate to unearthed fraud ITC case that lead to significant revenue
leakage and undermine fair market practices. The department is leveraging data
analytics and supply chain mapping tools to proactively identify and disrupt
such fraudulent activities.