GST Fraud: Rs 31.95 Cr Tax Evasion Busted

New Delhi, Oct 31 (PTI) GST officers have unearthed a large-scale case of fraudulently claiming Input Tax Credit (ITC) involving tax evasion of Rs 31.95 crore and arrested one person, the Finance Ministry said on Friday.

Investigations by the anti-evasion branch of the CGST Delhi South Commissionerate revealed that the company is actively engaged in availing fraudulent Input Tax Credit solely on the basis of invoices without any underlying supply of goods or services.

"The anti-evasion Branch of CGST Delhi South Commissionerate has unearthed a large-scale case of fraudulently availing Input Tax Credit (ITC). Director of the company has been arrested for orchestrating the evasion of Goods and Services Tax (GST) of about Rs 31.95 crore," a ministry statement said.


Acting on specific intelligence developed by the Anti-Evasion wing, an investigation was initiated into a suspicious supply chain. The inquiry revealed that the firm had fraudulently availed of ITC without any actual movement of goods.

Further investigation established that the firm had availed and passed on ineligible ITC from fictitious and non-existent firms.

The GST department is leveraging data analytics and supply chain mapping tools to proactively identify and disrupt such fraudulent activities, the statement said.