CGST Delhi officials arrest man for ITC fraud of around Rs 94 crore



Quick Summary
CGST Delhi North Commissionerate officials have arrested Krishan Kumar for allegedly operating five fake firms. These firms issued invoices for goods like butter and ghee without actual supply, facilitating an Input Tax Credit (ITC) fraud totalling around Rs 94 crore. Documents and materials related to the fake firms were seized from his residence.

The officers of CGST Delhi North Commissionerate upon data analysis and gathering of intelligence zeroed in on Shri Krishan Kumar who was involved in creating and operating fake firms using identification documents of his friends/employees.

As per investigation conducted so far, a total of 5 fake firms namely M/s Shradha Traders, M/s Anshara Impex, M/s Vijeta Enterprises, M/s SM Agencies and M/s Deepasha Sales were created by him for the issuance of goods-less invoices for items like butter/ghee/oil and passed on inadmissible Input Tax Credit (ITC) of Rs. 94 crore approx.  

During the search of his residence incriminating documents like ATM cards, signed cheques, bank documents, stamps of these dummy firms including stamp of the transport company as mentioned in the e-way bills of the fake firms and outer packets/cases of SIM cards of mobile phones used for registration of firms were recovered.

Man Arrested for Rs 94 Cr ITC Fraud by CGST Delhi

In view of the above Shri Krishan Kumar has thus committed offence specified under Section 132(1)(b) of the CGST Act, 2017. Accordingly, he has been arrested on 25.03.2021 under the provisions of the Section 69(1) of the CGST Act, 2017. He was sent to 14 days judicial custody by the duty Magistrate. Further investigation is under process.

It is pertinent to mention here that in the financial year 2020-21, CGST Delhi Zone has made total of 40 arrests in various cases involving GST evasion amounting to Rs. 5,310 crore.

FAQ :

Shri Krishan Kumar was arrested by officials of CGST Delhi North Commissionerate.

The fraud involved creating and operating fake firms to issue goods-less invoices and pass on inadmissible Input Tax Credit (ITC).

The estimated value of the Input Tax Credit (ITC) fraud is approximately Rs 94 crore.

A total of five fake firms were created by Krishan Kumar.

The invoices were for items like butter, ghee, and oil.

He was arrested on 25.03.2021 and sent to 14 days judicial custody.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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