GST
When arrest risk arises in a fake ITC case
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Facts
Arrest under Sec 69 is possible only for specified Sec 132 offences, with Commissioner approval and grounds given in writing. Taking ITC on invoices without supply is an offence under Sec 132.
Provisions and law
- Sec 69, CGST Act 2017Arrest only for specified offences under Sec 132, with Commissioner approval and grounds of arrest informed.
- Sec 132(1), CGST Act 2017Lists offences, including availing ITC on invoices without supply; punishment depends on the amount involved.
Analysis
Arrest is not the norm in a normal mismatch case. It becomes a risk when the department alleges fake invoicing above high thresholds, where the offence can be cognizable and non-bailable. The Supreme Court in Radhika Agarwal (2025) allowed anticipatory bail even before an FIR and stressed safeguards. Engage a lawyer early and keep your evidence ready.
Conclusion
- Assess the amount and nature of the allegation.
- Engage a lawyer on any summons, search or arrest talk.
- Ask about anticipatory bail if the risk is real.
- Keep a full evidence file to show genuine purchases.
A Savvy can do this for you
Reply to fake ITC notice when a supplier is found non-existent, Sec 16(2)(c)
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