In the enforcement action announced on April 28, 2026, the CGST Delhi South Commissionerate revealed it detected the fraudulent availment and utilisation of Input Tax Credit (ITC) of ₹60.59 crore through bogus invoices valued at ₹397.23 crore.
Imagine generating invoices worth hundreds of crores for goods that never existed, and then routing them through thriving businesses to slash their real tax liability. These well-organised frauds are increasingly common, and the Anti-Evasion Branch of the CGST Delhi South Commissionerate recently dismantled one such network, making an arrest.
The tax authorities explained the modus operandi: a non-functional entity with no actual commercial activity was a declared "place of business", but in reality, it was just a co-working space. It was used as a "place of business" to fraudulently pass inadmissible ITC. The beneficiary of this scheme was a separate entity engaged in smartphone trading.
The person arrested is the son of a director of the beneficiary smartphone trading entity. The accused allegedly managed and controlled its business operations and financial transactions.
Investigators found he had knowingly availed and utilised fake ITC backed solely by paper invoices, as per the CGST authorities.
The investigating team stated that a forensic examination of statements, financial trails, and transactional records exposed a "carefully orchestrated network designed exclusively to defraud government revenue."
The accused has been remanded to judicial custody for 14 days under Section 16 of the CGST Act, 2017.
This came barely eleven days after the same CGST Delhi South Commissionerate arrested the director of another company dealing in assorted items for fraudulent availment of ITC of over ₹8 crore. In that case, which the authorities announced on April 17, 2026, data analytics and a backward supply chain analysis found that actual inward supplies did not exist. Both cases used data analytics-driven GST enforcement.
