CGST Delhi South arrests iron and steel trader over fake ITC of ₹25.22 crore
The Anti-Evasion Branch found inadmissible input tax credit availed and passed on through bogus invoices of about ₹140.14 crore. The proprietor was arrested under section 69 of the CGST Act.
Key facts
- Published
- 18 September 2026
- Section
- GST
- Who it affects
- Traders buying on credit from unverified suppliers
In 30 seconds
- Inadmissible ITC of over ₹25.22 crore through bogus invoices of approximately ₹140.14 crore.
- Several supplier firms were non-existent, non-functional, suspended or cancelled.
- ITC was availed without actual receipt of goods and passed on without supply.
- Arrest on 17 September 2026 under section 69; 14 days’ judicial custody.
हिंदी में सार
CGST दिल्ली साउथ ने लोहे-स्टील के एक ट्रेडर को करीब ₹140.14 करोड़ के फर्जी बिलों के ज़रिये ₹25.22 करोड़ से ज़्यादा का गलत ITC लेने और आगे पास करने के मामले में गिरफ़्तार किया है।
The case
Officers of the Anti-Evasion Branch, CGST Delhi South Commissionerate, arrested the proprietor of a firm trading in iron and steel goods. The Ministry of Finance release says the case involves fraudulent availment, utilisation and passing on of inadmissible ITC aggregating to over ₹25.22 crore, through bogus invoices of approximately ₹140.14 crore.
What the investigation showed
- ITC was availed on invoices issued by multiple firms, several of which were found non-existent, non-functional, suspended or cancelled.
- Field verification established that certain suppliers had no genuine business activity at their declared places of business.
- ITC was availed without actual receipt of goods and passed on to recipients through invoices issued without supply.
Action taken
On the basis of evidence and statements recorded under section 70 of the CGST Act, 2017, the accused was arrested on 17 September 2026 under section 69 and produced before the Patiala House Court, which remanded him to judicial custody for 14 days. Further investigation is in progress.
Published 18 September 2026. Updated 3 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.