In a significant crackdown on GST fraud, the Central Goods and Services Tax (CGST) Delhi South Commissionerate has unearthed a massive Input Tax Credit (ITC) fraud worth approximately Rs. 7.85 crore, allegedly orchestrated by a South Delhi-based Chartered Accountant.
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The investigation revealed that the accused misused more than 80 GSTINs (Goods and Services Tax Identification Numbers), predominantly based in the Palam and Dwarka regions. These GSTINs were linked to the Chartered Accountant’s email addresses and contact numbers. A core group of 31 GSTINs was found to be engaged in circular trading without any actual supply of goods or services, highlighting a deliberate and systemic abuse of the GST regime.
Search operations were conducted at 12 different locations, during which several firms were discovered to be non-existent. Authorities seized multiple electronic devices and recorded statements from relevant individuals. Many taxpayers involved admitted to complete reliance on the Chartered Accountant for GST filings, with their login credentials and filings being centrally controlled by him.
The offences committed by the accused fall under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017. These offences are cognizable and non-bailable as per Section 132(5) and are punishable under Section 132(1)(i). Consequently, the Chartered Accountant was arrested under Section 69(1) of the Act and produced before the Duty Magistrate on June 7, 2025. He has been remanded to 14 days of judicial custody until May 21, 2025.
The case has exposed systemic vulnerabilities in the GST filing framework, including impersonation, misuse of login credentials, and circular trading. The investigation is ongoing to identify all beneficiaries of the ineligible ITC and to determine the complete extent of the fraud.
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