2 hrs ago
Delhi CGST Arrests Iron-Steel Trader in Fake GST Credit Scam
Tax authorities in Delhi arrested the owner of an iron and steel trading firm.
They say the firm used fake invoices to claim tax credits.
The alleged tax credit fraud was worth more than Rs 25.22 crore.
The invoices involved goods valued at about Rs 140.14 crore.
Investigators say some suppliers did not really exist or were not doing business.
They also say the firm claimed credit without receiving goods.
The accused was taken to court and sent to judicial custody for 14 days.
Officials are continuing to investigate whether other businesses were involved.
Delhi South CGST officials arrested an iron and steel trader’s proprietor on September 17.
Officials allege the firm fraudulently availed, used and passed on ITC exceeding Rs 25.22 crore.
The alleged fraud involved bogus invoices worth approximately Rs 140.14 crore.
Several supplier firms were reportedly non-existent, non-functional, suspended or cancelled, with no genuine business activity found at some declared premises.
A Patiala House Court remanded the accused to 14 days in judicial custody as the investigation continues.
- Who
- The proprietor of an iron and steel trading firm was arrested by Delhi South CGST officials.
- What
- The proprietor allegedly availed, utilised and passed on fraudulent Input Tax Credit exceeding Rs 25.22 crore through bogus invoices.
- Where
- The enforcement action was conducted by the Delhi South Commissionerate, and the accused was produced before Patiala House Court in New Delhi.
- When
- The arrest took place on September 17; the articles do not specify the year.
- Why
- Officials allege the firm claimed tax credit without receiving goods and passed it to others through invoices without corresponding supplies.
Key facts
- Alleged fraudulent ITC
- More than Rs 25.22 crore
- Approximate invoice value
- Rs 140.14 crore
- Arresting authority
- Anti-Evasion Branch, Central Goods and Services Tax, Delhi South Commissionerate
- Arrest date
- September 17
- Legal provision
- Section 69 of the Central Goods and Services Tax Act
- Court action
- Patiala House Court ordered 14 days of judicial custody
- Investigation status
- Further investigation is underway into the full extent of the alleged fraud and other linked entities
Sources
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