The Anti-Evasion Branch of CGST, Delhi South Commissionerate arrested a partner of an iron and steel goods trading firm on charges of fraudulent ITC claims amounting to over Rs. 87 crore. The arrest was part of an ongoing enforcement drive against such activities.
On September 15, 2026, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, arrested a partner of a firm involved in trading iron and steel goods. This arrest was an integral part of an ongoing enforcement drive against fraudulent Input Tax Credit (ITC) claims.
Investigation conducted by the CGST officers uncovered that the firm had availed inadmissible ITC based on bogus invoices worth approximately Rs. 87.67 crore. It was discovered that several of the firms issuing these invoices were non-existent, non-functional, suspended or cancelled.
Field verification also exposed that certain suppliers had no genuine business activity at their declared locations. Further inquiry revealed that ITC was availed without actual receipt of goods and was passed on to various recipients through invoices issued without corresponding supply of goods.
Based on the evidence gathered during investigation and statements recorded under Section 70 of the CGST Act, 2017, the accused was arrested under Section 69 of the same act and produced before the Patiala House Court. The court remanded the individual to judicial custody for 14 days.
Investigations in this case are still ongoing.
Source:
Press Information Bureau
