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CGST Delhi South Arrests Director in Rs 31.95 Crore Fake ITC Case

Officials say the case underscores a shift to data-led GST enforcement targeting fake-invoice chains.

Overview

  • The accused was produced before a judicial authority and remanded to judicial custody for 14 days, the Finance Ministry said on Friday.
  • Investigators found the company claimed and passed on ineligible input tax credit using fake invoices without any underlying supply or movement of goods.
  • The inquiry began after specific intelligence pointed to a suspicious supply chain, according to the Anti-Evasion wing of the commissionerate.
  • Authorities report using data analytics and supply chain mapping to identify fictitious or non-existent firms linked to the alleged credits.
  • Government data show detected ITC fraud rose from 7,231 cases worth Rs 24,140 crore in 2022–23 to 15,283 cases worth Rs 58,772 crore in 2024–25, with tighter GSTR-1, GSTR-2B and GSTR-3B controls introduced to curb misuse.