New Delhi, September 18, 2026 (Yes Punjab News)
The Anti-Evasion Branch of the Central Goods and Services Tax (CGST), Delhi South Commissionerate, has arrested the proprietor of an iron and steel trading firm for allegedly availing, utilising and passing on fraudulent Input Tax Credit (ITC) worth more than Rs 25.22 crore through bogus invoices valued at around Rs 140.14 crore, the Finance Ministry said on Friday.
The action is part of an ongoing enforcement drive against fraudulent ITC claims and tax evasion under the Goods and Services Tax (GST) regime.
According to the ministry, the investigation found that the firm had allegedly availed inadmissible ITC on the strength of invoices issued by multiple supplier firms. Several of these suppliers were found to be non-existent, non-functional, suspended or cancelled.
Field verification by CGST officials also found that some of the suppliers were not conducting genuine business activities from their declared places of business.
Investigators further alleged that the firm claimed ITC without actually receiving the goods and subsequently passed on the credit to various recipients through invoices that were not backed by any corresponding supply of goods.
Based on evidence collected during the investigation and statements recorded by officials, the proprietor was arrested on September 17 under Section 69 of the CGST Act.
He was subsequently produced before the Patiala House Court, which remanded him to 14 days of judicial custody, the ministry said.
The department has initiated further investigation to determine the full extent of the alleged GST fraud and establish the involvement of other entities connected with the transactions.
The CGST department said it would continue to take action against tax evasion and fraudulent ITC networks that allegedly cause revenue losses to the exchequer.
In a separate action in August, the Hyderabad CGST Zone uncovered an alleged clandestine pan masala and tobacco manufacturing unit in Telangana’s Medchal-Malkajgiri district. The operation detected alleged duty and cess evasion of around Rs 160 crore and resulted in the arrest of a key accused.
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