CGST Delhi busts nexus for input tax credit fraud of Rs 50 crore, one arrested

Officers of the CGST Delhi West Commissionerate have busted a fake GST invoice racket that used to pass on fake GST input tax credit (ITC) of more than Rs 50 crore.

Searches were undertaken at multiple locations in Delhi using data analytics, and it was found that a person named Shiva had been obtaining KYC credentials from persons on the pretext of getting loans sanctioned for them and subsequently selling the firms, a ministry of finance release said.

Further searches revealed that Shiva had created more than 30 fake firms and sold them in cash at a premium. He also stated that to avoid physical verification, he used AADHAR authentication to obtain these GST registrations, the release added.


These multiple firms were found to have availed of or passed on ineligible ITC of more than Rs. 50 crore. Accordingly, Shiva violated Section 132 of the CGST Act, 2017 and was arrested.