Delhi CGST arrests Individual accused of Orchestrating ₹16.3 Crore GST Evasion using Manpower and Management Companies
A release from the Press Information Bureau of India states that the offence is categorised as cognizable and non-bailable as the quantum evasion exceeds ₹5 crore.
Delhi CGST - Individual accused - Orchestrating- GST Evasion - Manpower - Management Companies - taxscan
Delhi CGST - Individual accused - Orchestrating- GST Evasion - Manpower - Management Companies - taxscan
The Anti-Evasion Branch of the Central Goods and Services Tax (CGST), Delhi South Commissionerate has arrested an individual alleged to have orchestrated a large-scale Goods and Services Tax (GST) evasion involving nearly ₹16.30 crore.
Reports suggest that the officials uncovered that the firms, which were engaged in manpower supply and facility management services had been declaring outward supplies and collecting GST from their clients but abstained from remitting the corresponding tax amounts to the government across multiple financial years.
The accused instead allegedly diverted the collected tax in absolute contravention of the provisions of the CGST Act, 2017.
The commissionerate uncovered the operation following an extensive analysis of GST return data from the companies, revealing a systematic pattern of under-reporting liabilities by three interlinked companies.
The arrested person was found to be the common director and the controlling authority of all three entities. The arrested individual admitted to his role in the fraudulent operation during questioning and was later booked under Section 132(1)(d) while being liable for punishment under Section 132(1)(i) of the CGST Act.
Since the quantum amount involved in the evasion operation exceeds ₹5 crore, the offence shall be categorised as cognizable and non-bailable under Section 132(5) of the GST Act.
The arrested individual was produced before the Duty Magistrate and was remanded to judicial custody for 14 days.
GST departments across the country have intensified enforcement in recent months, signalling a renewed resolve to combat fraudulent trade practices, including GST evasion and misuse of Input Tax Credit.
In a similar case last month, the Maharashtra State Tax Department arrested a trader from Mumbai for a ₹10.03 crore GST scam involving a fictitious cement trading firm used to generate bogus invoices and claim fraudulent input tax credits.
Officials confirmed that the investigation is ongoing, with efforts underway to trace the flow of illicit funds and identify any additional beneficiaries who may have profited from the evasion.
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