The Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested the proprietor of an iron and steel trading firm in a case involving alleged fraudulent availment, utilisation and passing on of inadmissible Input Tax Credit (ITC) amounting to over INR 25.22 crore through bogus invoices worth approximately INR 140.14 crore.
According to the tax authorities, the investigation found that the firm had availed inadmissible ITC on the basis of invoices issued by multiple firms, several of which were found to be non-existent, non-functional, suspended or cancelled.
Field verification further revealed that certain suppliers had no genuine business activity at their declared places of business, the authorities said.
The investigation also found that ITC was allegedly availed without actual receipt of goods and subsequently passed on to various recipients through invoices issued without corresponding supply of goods.
Based on the evidence gathered during the investigation and statements recorded under Section 70 of the Central Goods and Services Tax Act, 2017, the proprietor was arrested on September 17, 2026, under Section 69 of the CGST Act.
The accused was subsequently produced before the Patiala House Court, which remanded him to 14 days’ judicial custody.
The CGST authorities said that further investigation in the matter is underway.
