Delhi steel trader arrested over alleged Rs 25.22 crore GST credit fraud

New Delhi: Central GST officers have arrested the proprietor of an iron and steel trading firm in connection with alleged input tax credit (ITC) fraud involving over Rs 25.22 crore, the Finance Ministry said.

The accused was arrested on September 17 and produced before the Patiala House Court, which remanded him to 14 days of judicial custody.

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Suppliers found non-existent or inactive

An investigation by the anti-evasion branch of the CGST Delhi South Commissionerate found that the firm had claimed inadmissible ITC against invoices from multiple suppliers. Several were found to be non-existent or non-functional, or had their GST registrations suspended or cancelled.

Field verification also found no genuine business activity at the declared premises of certain suppliers, the ministry said.

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Credit allegedly claimed without receiving goods

Investigators alleged that the firm availed and utilised ITC without actually receiving goods, and passed on credit to other recipients through invoices unsupported by corresponding supplies.

The case involves alleged fraudulent availment, utilisation and passing on of inadmissible ITC exceeding Rs 25.22 crore through bogus invoices worth approximately Rs 140.14 crore, according to the ministry.

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