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The Central Goods and Services Tax (CGST) Commissionerate of Ghaziabad has uncovered a fraudulent Input Tax Credit (ITC) scam amounting to ₹23.48 crore, leading to the arrest of a firm owner operating out of Noida. The accused was taken into custody under provisions of the GST Act and sent to judicial custody following a court hearing.
Officials say the arrested individual used fake invoices without an actual supply of goods or services to wrongfully claim ITC, thereby defrauding the exchequer. The transactions in question were routed through multiple fictitious firms allegedly created for the sole purpose of claiming ineligible tax credits.
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Bogus Entities and Fake Billing Networks
According to CGST officials, the scam involved issuing invoices to the tune of ₹130 crore, generating artificial transactions to create a paper trail justifying fraudulent credit claims. The firm’s GST registration has since been suspended and its associated accounts frozen.
A search operation was conducted at the business premises, where officials reportedly recovered fake documents, rubber stamps, and digital evidence of fabricated purchases and sales.
The department confirmed that the arrested person was the key operator behind the bogus entity and responsible for creating a web of fake billing practices. The accused has been charged under Section 132 of the CGST Act, which deals with offences involving tax evasion exceeding ₹5 crore and is a non-bailable offence.
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GST Authorities Continue Pan-India Crackdown
This action comes as part of a larger nationwide drive by GST enforcement agencies to identify and prosecute tax evasion cases involving fake invoicing and ITC fraud. Officials say such practices not only cause substantial revenue loss but also distort fair market competition.
Authorities have urged taxpayers to verify the credentials of their vendors and business partners on the official GST portal, warning that more arrests may follow in the coming weeks as investigations continue.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.
