GST officials bust Rs 31.95 cr input tax credit fraud in Delhi

New Delhi: Central GST officials have busted a Rs31.95 crore scam in the national capital involving a company that was fraudulently availing Input Tax Credit (ITC) based on fake invoices. The director of the company has been arrested, according to an official statement issued on Friday.

The anti-evasion branch of CGST Delhi South Commissionerate unearthed a large-scale case of fraudulently availingITC. 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 statement said.

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 passed on ineligible ITC from fictitious and non-existent firms, in gross violation of the provisions of the CGST Act 2017, the statement said. 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.