CGST Delhi South Commissionerate unearths fraudulent availment of Input Tax Credit (ITC) of over Rs. 8 crore; director of company arrested

India, April 17 -- The Government of India has issued a release:

Continuing its enforcement drive against Input Tax Credit (ITC) frauds, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Delhi South Commissionerate, has arrested a director of a company dealing in assorted items for fraudulent availment/utilisation of Input Tax Credit (ITC) of more than Rs. 8 crore in violation of Section 16 of the CGST Act, 2017.

Intelligence was developed through data-analytics that the taxpayer was involved in fraudulent availment/utilisation of ineligible ITC without underlying supply from the suppliers which were either suspended, cancelled suo-moto, or cancelled on application. Backward supply chain analysis established absence of i...