HYDERABAD, SEPTEMBER 25, 2026: As part of an ongoing enforcement drive against fraudulent ITC claims, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST), Secunderabad Commissionerate under the CGST & Customs Zone, Hyderabad, has unearthed a significant case of fraudulent availment of ITC amounting to Rs. 32.28 crore through bogus invoices and arrested a mastermind of Input Tax Credit fraud based in Musheerabad, Hyderabad.
Investigations revealed that the company under the accused, engaged in trading of TMT bars and steel pipes and tubes, had availed fraudulent ITC on the basis of invoices issued by firms which were found to be non-existent, non-functional, or having cancelled GST registrations for issuing fake invoices. Field verification conducted by jurisdictional authorities confirmed that these suppliers were bogus entities with no genuine business activity at their declared places of business.
Further inquiry established that the ITC was availed without actual receipt of goods and was utilized for discharge of GST liability, in contravention of the provisions of the Central Goods and Services Tax Act, 2017.
Based on the evidence gathered during investigation and statements recorded, the accused was arrested on 24.09.2026 under Section 69 of the CGST Act, 2017 and produced before the Duty Magistrate and has been remanded to judicial custody for 14 days. Further, the investigation is in progress.
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