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ITC Fraud Unearthed: Company Director Arrested in Rs 32.28 Crore Bogus Invoice Scheme
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News18•25-09-2026, 17:15
ITC Fraud Unearthed: Company Director Arrested in Rs 32.28 Crore Bogus Invoice Scheme
- •CGST Secunderabad uncovered a Rs 32.28 crore Input Tax Credit (ITC) fraud involving bogus invoices.
- •The director of a company in Musheerabad was arrested as the mastermind behind the fraudulent ITC claims.
- •Investigation revealed the company, trading in TMT bars and steel pipes, availed fraudulent ITC from non-existent or non-functional firms.
- •Field verification confirmed suppliers were bogus entities with no genuine business activity.
- •The ITC was availed without actual receipt of goods and used to discharge GST liability, violating CGST Act, 2017 provisions.
Key Questions Answered
The CGST Secunderabad Anti-Evasion Branch arrested a company director in Musheerabad for allegedly orchestrating a fraudulent Input Tax Credit (ITC) scam worth Rs 32.28 crore using bogus invoices.
Investigators found that the accused company, which traded TMT bars and steel pipes, claimed ITC using invoices from non-existent or non-functional suppliers without actually receiving any goods.
Following evidence gathered during the investigation, the accused was arrested on September 24 under Section 69 of the CGST Act, 2017, and remanded to judicial custody for 14 days by the Duty Magistrate.