CGST Delhi South
Commissionerate Detects Evasion of GST of ₹16.30 crore in Three Firms;
One Held
Authority:
·
Anti-evasion
Branch, CGST
Delhi South Commissionerate
Offence:
·
GST
evasion of
approx. ₹16.30 crore
by under-reporting tax liabilities over multiple years.
Entities
Involved:
·
Three
linked companies in
manpower supply & facility management services.
·
Declared
outward supplies and collected GST from clients but failed to remit tax to the government.
Key
Individual:
·
Common
director & controlling person
in all three companies.
·
Admitted to the evasion during investigation.
Legal
Provisions Invoked:
·
Section
132(1)(d) – Tax
collected but not paid to Govt.
·
Section
132(1)(i)
– Punishment provision.
·
Section
132(5) –
Evasion above ₹5 crore → cognizable & non-bailable offence.
Status:
·
Arrested
and produced before Duty
Magistrate.
·
Judicial
custody for
14 days.
Next
Steps:
·
Ongoing
investigation to trace
fund flow and identify other
beneficiaries.
The
Anti-evasion Branch of the Central Goods & Services Tax (CGST) Delhi South
Commissionerate has arrested a key individual for orchestrating the evasion of
Goods and Services Tax (GST) of approximately ₹16.30 crore. The arrest
follows detailed analysis of GST return data.
The
investigation revealed that three closely linked companies, engaged in manpower
supply and facility management services, were consistently under-reporting
their GST liabilities over multiple financial years.
These
entities had declared outward supplies and collected GST from clients. However,
they failed to discharge the corresponding tax liabilities. The differential
tax collected but not paid to the government was diverted in clear violation of
the CGST Act, 2017.
The
person arrested was found to be the common director and controlling person in
all three entities and admitted to the tax evasion during the investigation.
The offence is covered under Section 132(1)(d) and is punishable under Section
132(1)(i) of the CGST Act, 2017. Given that the
quantum of evasion exceeds ₹5 crore, the offence is cognizable and
non-bailable under Section 132(5) of the Act. The person arrested was produced
before the Duty Magistrate and has been remanded to judicial custody for 14
days.
The
investigation is ongoing to trace the flow of funds and identify any additional
beneficiaries.