CGST Delhi South Arrests Two for ₹8.52 Crore Fake ITC Claim Using Bogus Invoices

New Delhi: The anti-evasion branch of the CGST Delhi South Commissionerate has arrested two persons for allegedly fraudulently availing ineligible input tax credit (ITC) of around ₹8.52 crore by using bogus invoices worth ₹199.90 crore without any actual movement of goods.

According to an official statement, the arrests followed search operations conducted on January 12 and 13, 2026, at the principal place of business, additional premises and residential locations linked to the accused. During the searches, officers found several premises to be closed or non-existent, with negligible business activity, indicating the creation of firms solely for the purpose of generating fake invoices.

Statements recorded under Section 70 of the Central Goods and Services Tax Act, 2017 revealed that the operations were being controlled by the proprietor’s father, who played a key role in the alleged tax evasion. The statements also included admissions regarding the fraudulent availment of ITC without receipt of goods.

The persons arrested—the proprietor of the firm and his father—were found to be the direct beneficiaries of the alleged evasion, the department said. The offence is punishable under Section 132 of the CGST Act, 2017.

Following their arrest, the accused were produced before the duty magistrate and have been remanded to judicial custody for 14 days.

Officials said further investigation is underway to trace the flow of funds and identify any other entities or individuals who may have benefited from the fraudulent transactions.