Central GST officers have busted a Rs 31.95 crore rip-off within the nationwide capital involving an organization that was fraudulently availing Enter Tax Credit score (ITC) based mostly on faux invoices. The director of the corporate has been arrested, in line with an official assertion issued on Friday.
The anti-evasion department of CGST Delhi South Commissionerate unearthed a large-scale case of fraudulently availing ITC. The director of the corporate has been arrested for orchestrating the evasion of Items and Companies Tax (GST) of roughly Rs. 31.95 crore and produced earlier than the competent judicial authority, which has remanded him to judicial custody of 14 days, the assertion mentioned.
The investigation revealed that the corporate is actively engaged in availing fraudulent Enter Tax Credit score solely on the idea of invoices with none underlying provide of products or providers.
Performing on particular intelligence developed by the anti-evasion wing, an investigation was initiated right into a suspicious provide chain. The inquiry revealed that the agency had fraudulently availed ITC with none precise motion of products. Additional investigation established that the agency had availed and handed on ineligible ITC from fictitious and non-existent corporations, in gross violation of the provisions of the CGST Act 2017, the assertion mentioned.
This case kinds a part of the broader initiative undertaken by the CGST Delhi South Commissionerate to unearth fraud ITC case that result in important income leakage and undermine honest market practices. The division is leveraging knowledge analytics and provide chain mapping instruments to proactively determine and disrupt such fraudulent actions, the assertion added.
In the meantime, the variety of ITC fraud circumstances detected by Central GST formations within the final three years has greater than doubled from 7,231 in 2022-23 involving an quantity of Rs 24,140 crore to fifteen,283 circumstances in 2024-25 involving a sum of Rs 58,772 crore, in line with info tabled in Parliament not too long ago.
The federal government has taken proactive steps to forestall and deal with the fraudulent circumstances of claiming ITC which embrace permitting enter tax credit score just for invoices or debit notes which have been furnished by the provider in FORM GSTR-1 and particulars of which have been communicated to the registered particular person in FORM GSTR-2B.
As a part of these steps, a registered particular person shouldn’t be allowed to furnish FORM GSTR-1, if he has not furnished return in FORM GSTR-3B for the previous tax interval, in line with the federal government.
