CGST busts Rs 32 crore fake invoice scam
Central GST officials in Delhi uncovered a Rs 31.95 crore tax fraud involving a company that claimed Input Tax Credit using fake invoices without any actual supply of goods or services. The company’s director was arrested and sent to 14 days of judicial custody after an investigation by the anti-evasion wing of the CGST Delhi South Commissionerate.
The probe began after intelligence flagged a suspicious supply chain. Officials found the firm had received and passed on ineligible ITC from fictitious entities, violating the CGST Act 2017. The case is part of a broader effort to curb ITC fraud, which drains revenue and distorts fair competition. Authorities are now using data analytics and supply chain mapping to detect and stop such schemes early.
Nationally, ITC fraud cases have more than doubled in three years—from 7,231 in 2022–23 (Rs 24,140 crore) to 15,283 in 2024–25 (Rs 58,772 crore). To counter this, the government now allows ITC claims only on invoices reported by suppliers in FORM GSTR-1 and reflected in the buyer’s FORM GSTR-2B. Additionally, taxpayers cannot file GSTR-1 if they have not submitted the prior month’s GSTR-3B return.
