New Delhi: The CGST Delhi South Commissionerate arrested two persons for fraudulent ITC amounting to about ₹8.52 crore through bogus invoices worth ₹199.90 crore, officials said on Wednesday.
The Anti-Evasion Branch carried out searches on January 12 and 13, 2026. Officers searched the principal place of business, additional premises, and residences linked to the firm. They found several closed or non-existent locations with minimal activity.
Officials said the accused availed ineligible ITC without any actual receipt of goods. During questioning under Section 70 of the CGST Act, 2017, investigators recorded statements that revealed control of operations by the proprietor’s father. The statements also included admissions of fake ITC claims.
Authorities identified the proprietor and his father as the direct beneficiaries of the tax evasion. Officials said the offence attracts punishment under Section 132 of the CGST Act, 2017.
Fraudulent ITC probe expands to trace fund flow and beneficiaries
The department produced the arrested persons before the Duty Magistrate. The court remanded them to judicial custody for 14 days.
Investigators said the probe remained ongoing. They added that teams were tracing the flow of funds and identifying any additional beneficiaries linked to the fraudulent ITC claims.
