CGST Delhi South Commissionerate detects evasion of GST of Rs. 16.30 crore

• 08 Aug 2025
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On 7 August 2025, the Central Goods and Services Tax (CGST) Delhi South Commissionerate’s anti-evasion branch arrested an individual for organizing the evasion of Goods and Services Tax (GST) of nearly Rs. 16.30 crore. 

The arrest took place after the GST return data’s detailed analysis. As per the investigation, three closely-linked firms dealing in manpower supply and facility management services were under-reporting their GST liabilities on a consistent basis over several financial years. 

These firms declared outward supplies and received the GST amount from their clients. But they did not discharge the corresponding tax liabilities. The differential tax collected but not paid to the tax authority indicates a clear violation of CGST Act of 2017.

The arrested individual was a common director as well as controlling person in all three firms. During the investigation, he admitted he evaded tax. This offence is covered by Section 132(1)(d) and is punishable under Section 132(1)(i) of CGST Act 2017. 

The offence is a cognizable and non-bailable offence under Section 135(5) since the quantum of evasion is more than Rs. 5 crore. The individual arrested for tax evasion was brought before the duty magistrate and has been remanded to judicial custody for a period of 14 days. The investigation continues to trace the funds’ flow and identify whether any other individuals were involved in the evasion.

Source: Press Information Bureau (PIB)