The Anti-Evasion Branch of the CGST Delhi South Commissionerate has arrested two individuals for allegedly fraudulently availing ineligible Input Tax Credit (ITC) of about ₹8.52 crore by issuing and using bogus invoices worth ₹199.90 crore without any actual supply of goods. Searches conducted on January 12–13, 2026 at the principal place of business, additional premises, and residential locations revealed closed or non-existent firms with negligible business activity.
The Anti-Evasion Branch of the CGST Delhi South Commissionerate has arrested two individuals for allegedly fraudulently availing ineligible Input Tax Credit (ITC) of about ₹8.52 crore by issuing and using bogus invoices worth ₹199.90 crore without any actual supply of goods. Searches conducted on January 12–13, 2026 at the principal place of business, additional premises, and residential locations revealed closed or non-existent firms with negligible business activity. Statements recorded under Section 70 of the CGST Act, 2017 indicated that the operations were effectively controlled by the proprietor's father and that fake ITC claims were admitted. Both the proprietor and his father were identified as direct beneficiaries of the alleged tax evasion. The offence is punishable under Section 132 of the CGST Act, 2017. The accused were produced before the Duty Magistrate and remanded to judicial custody for 14 days, while further investigation continues to trace fund flows and identify other beneficiaries.
Ministry of Finance
CGST Delhi South Commissionerate arrests two people for fraudulent availment of Input Tax Credit (ITC) of around ₹8.52 crore through bogus invoices of ₹199.90 crore
Posted On: 15 JAN 2026 4:30PM by PIB Delhi
The Anti-Evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has arrested the key persons for fraudulent availment of ineligible Input Tax Credit (ITC) amounting to approximately ₹8.52 crore through bogus invoices of ₹199.90 crore without actual receipt of goods.
Searches on January 12-13, 2026, at the principal place of business, additional sites, and residences uncovered closed/non-existent premises with minimal activity. Statements recorded under Section 70 of CGST Act 2017 revealed the proprietor's father-controlled operations and admitted fake ITC claims.
The persons arrested i.e. proprietor and his father were found to be direct beneficiaries of this evasion. The offence is punishable under Section 132 of the CGST Act, 2017. The persons arrested were 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.