Accused Linked to HR and Facility Management Firms Admits Guilt; Sent to 14-Day Judicial Custody
📰 By Economy India Bureau | New Delhi
In a significant crackdown on tax evasion, the Central Goods and Services Tax (CGST) Delhi South Commissionerate has unearthed a case of GST fraud amounting to ₹16.30 crore involving three firms operating in the human resources and facility management services sector. Following detailed analysis of GST return data, one individual was arrested in connection with the fraud.
According to officials, the arrested person was found to be the common director and controlling authority across all three firms. During the investigation, the accused admitted to orchestrating the tax evasion, marking a clear violation of the CGST Act, 2017.

🔍 Nature of the Fraud
Investigators revealed that the three entities had been underreporting their GST liabilities over multiple financial years. These companies were reportedly charging GST from customers on outward supplies, but failed to remit the collected taxes to the government exchequer.
Moreover, the firms showed fabricated or manipulated outward supply data, while continuing to enjoy the benefits of input tax credit. The differential tax amount, which was not deposited with the government, was illegally diverted elsewhere.

📜 Legal Provisions Invoked
The fraudulent activities have been booked under Section 132(1)(d) of the CGST Act, 2017, which deals with the wrongful availment or utilization of input tax credit without actual receipt of goods or services. Given the quantum of fraud exceeding ₹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 has been remanded to 14 days of judicial custody.
⚖️ Legal Ramifications and Future Action
The department clarified that further investigation is ongoing, and additional individuals or business entities may come under scrutiny if their involvement is established.
Officials emphasized the government’s zero-tolerance policy toward tax fraud, especially in the wake of increased efforts to curb GST evasion through data analytics and inter-departmental coordination.
This arrest serves as a strong deterrent to entities attempting to defraud the exchequer, reaffirming the enforcement arm’s vigilance and commitment to protecting taxpayer interests.
(Economy India)