Archive · 31 Oct 2025
CGST Delhi South Busts Firm Over Rs 31.95 Crore Fake ITC Fraud, One Arrested
Imagine a company that got fake papers saying they bought things when they didn't.
Using these fake papers, they got money back from the government that they weren't supposed to get.
This is called fake Input Tax Credit (ITC).
Tax officers in Delhi found out about this and discovered the company got about 32 crore rupees this way.
They have arrested the person in charge of the company, who will stay in jail for two weeks while they investigate more.
This is part of a bigger effort by the tax department to stop companies from cheating the government out of money.
The government has also made new rules to make it harder for companies to claim fake tax credits.
CGST Delhi South Commissionerate uncovered a fraud involving approximately Rs 31.95 crore in fake Input Tax Credit (ITC).
The company director has been arrested for orchestrating this GST evasion and was remanded to 14 days judicial custody.
The firm fraudulently availed ITC solely based on invoices, without any actual supply of goods or services.
Investigation revealed the company passed on ineligible ITC from fictitious and non-existent firms.
This action is part of a larger crackdown by CGST Delhi South on revenue leakage and unfair market practices.
- Who
- CGST Delhi South Commissionerate and the arrested Director of a firm
- What
- Busted a firm for fraudulently availing Rs 31.95 crore in Input Tax Credit (ITC) and arrested the company's director.
- When
- Friday
- Where
- Delhi
- Why
- The firm availed fake ITC on invoices without any supply of goods or services, passing it on from fictitious firms, violating CGST Act 2017.
Government Measures
Nature of Fraud
Preventing ITC Fraud
Government Measures
The government is implementing measures like ensuring ITC is claimed only on communicated invoices (FORM GSTR-2B) and restricting FORM GSTR-1 submission if FORM GSTR-3B is not filed for the preceding period.
Nature of Fraud
Companies are fraudulently availing ITC using fake invoices without any actual supply of goods or services, often by claiming credit from fictitious firms, leading to significant revenue leakage.
- Amount Involved
- Rs 31.95 Crore
- Fraudulent Activity
- Availing Input Tax Credit (ITC) without actual supply of goods or services
- Arrested Individual
- Director of the company
- Arresting Authority
- CGST Delhi South Commissionerate, Anti-Evasion Branch
- Remand Period
- 14 days judicial custody
- Date of Remand
- Friday
