GST Officers Bust Fake ITC Racket In Iron, Steel Sector
The case involves fraudulent availment and passing on of ITC totalling Rs 47.12 crore, based on bogus invoices against a taxable value of approximately Rs 261 crore, without any actual supply of goods.
(Photo source: Vijay Sartape/ NDTV Profit)
GST officers have busted a racket that fraudulently availed Input Tax Credit (worth Rs 47.12 crore in the iron and steel sector and arrested one person, the finance ministry said on Monday. The Anti-Evasion Branch of CGST Delhi South Commissionerate has unearthed a large-scale fraudulently availed Input Tax Credit racket involving a city-based taxpayer engaged in the trading of iron and steel items.
The case involves fraudulent availment and passing on of ITC totalling Rs 47.12 crore, based on bogus invoices against a taxable value of approximately Rs 261 crore, without any actual supply of goods.
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 and passed on ITC without any actual movement of goods. Further investigation established that the firm had availed ITC from cancelled and suspended GSTINs, in gross violation of the provisions of the CGST Act 2017.
The firm was found to be non-functional at its declared place of business during a search conducted under the GST law. The proprietor was arrested on Aug. 1, 2025, an official statement said.
