CGST Delhi South officers bust firm in fraudulent availment of ITC involving over Rs. 25.22 crore; proprietor arrested

Officers of the Anti-Evasion Branch, CGST Delhi South Commissionerate, arrested the proprietor of a firm dealing in iron and steel goods for allegedly committing tax fraud involving the fraudulent availment, utilisation, and passing on of inadmissible Input Tax Credit (ITC) exceeding Rs. 25.22 crore via bogus invoices totaling approximately Rs. 140.14 crore. Investigations indicated that the firm availed ITC through invoices from non-existent or non-functional entities without actual receipt or supply of goods. Following the recording of statements under Section 70 of the CGST Act, 2017, the proprietor was arrested on September 17, 2026, under Section 69 of the CGST Act, 2017, and remanded to judicial custody for 14 days by the Patiala House Court.