CGST Arrests 2 for ITC Fraud

New Delhi, Jan 15 (PTI) The Anti-Evasion Branch of the Central Goods & Services Tax (CGST) has arrested two persons for fraudulent availing of Rs 8.52 crore worth input tax credit (ITC) through issuance of bogus invoices of Rs 199.9 crore, the finance ministry said on Thursday.

The CGST Delhi South Commissionerate conducted searches on January 12-13, 2026, at the principal place of business, additional sites, and residences and uncovered closed/non-existent premises with minimal activity.


"The persons arrested i.e. proprietor and his father were found to be direct beneficiaries of this evasion," the ministry said.

The offence is punishable under Section 132 of the CGST Act, 2017. The persons arrested were produced before the Duty Magistrate and have been remanded in judicial custody for 14 days.

The investigation is ongoing to trace the flow of funds and identify any additional beneficiaries.