CGST Delhi South Unearths ₹16.30 Crore GST Evasion; One Arrested

In a major crackdown on tax evasion, the Anti-Evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has unearthed a Goods and Services Tax (GST) evasion of approximately ₹16.30 crore involving three interlinked firms. One key individual has been arrested in connection with the case.

The action comes after meticulous scrutiny of GST return data, which revealed that the firms—engaged in manpower supply and facility management services—were consistently under-reporting their GST liabilities across multiple financial years.

Despite having declared outward supplies and collected GST from clients, the companies failed to remit the collected tax to the government. The evaded amount was allegedly diverted, in clear violation of the provisions of the CGST Act, 2017.

Investigations further revealed that a single individual served as the common director and was the controlling mind behind all three entities. During questioning, he admitted to the tax evasion. He has been booked under Section 132(1)(d) and faces prosecution under Section 132(1)(i) of the CGST Act, 2017. As the tax evasion amount exceeds ₹5 crore, the offence is classified as cognizable and non-bailable under Section 132(5) of the Act.

The accused was produced before the Duty Magistrate and remanded to 14 days of judicial custody.