The officers of the Anti-Evasion Branch of the Central Goods and Services Tax (CGST), Delhi South Commissionerate, have arrested a proprietor of a firm engaged in the trading of iron and steel goods. The arrest is part of an ongoing crackdown on fraudulent Input Tax Credit (ITC). The accused was arrested under Section 69 of the CGST Act, 2017. 

 

The Ministry of Finance said the proprietor was arrested in a case involving fraudulent availment, utilisation and passing on of inadmissible ITC aggregating to over 25 crore rupees through bogus invoices of over 140 crore rupees. It added that the investigation has revealed that the firm had availed inadmissible ITC on the basis of invoices issued by multiple firms, several of which were found to be non-existent, non-functional, suspended or cancelled. Field verification also found that some suppliers had no genuine business activity at their declared addresses. The investigation further found that ITC was claimed without the actual receipt of goods. It was also passed on to other recipients through invoices issued without any corresponding supply of goods.