New Delhi, October 31, 2025: The Anti-Evasion Branch of the CGST Delhi South Commissionerate has uncovered a large-scale case in which a company fraudulently claimed input tax credit (ITC) amounting to approximately ₹31.95 crore. The company’s director has been arrested and remanded to judicial custody for 14 days under the provisions of the CGST Act 2017.
Investigations revealed that the firm claimed ITC on the basis of invoices despite there being no actual supply of goods or services and no movement of goods. The enquiry traced the chain of transactions to fictitious entities that had no genuine economic activity and were used solely to transfer ineligible credits in contravention of law.
This case is part of the Commissionerate’s enhanced monitoring effort that deploys data-analytics tools and supply-chain mapping to detect atypical credit flows and revenue leakage. The department said that such action is intended to uphold fair market practices and protect government revenue.
Source: Press Information Bureau (PIB) – Ministry of Finance
