CA Arrested in ₹7.85 Crore GST Scam Involving Fake ITC Claims
New Delhi (The Uttam Hindu): In a major crackdown, the Central Goods and Services Tax (CGST) Delhi South Commissionerate has arrested a South Delhi-based Chartered Accountant for orchestrating a large-scale Goods and Services Tax (GST) fraud involving fake Input Tax Credit (ITC) claims worth approximately ₹7.85 crore.
According to a statement from the Finance Ministry, the fraud was carried out by misusing over 80 GST Identification Numbers (GSTINs), primarily linked to the Palam and Dwarka areas. These GSTINs were reportedly registered using the Chartered Accountant’s email addresses and contact numbers.
Investigations revealed that a core group of 31 GSTINs was involved in circular trading—creating false transactions without the actual supply of goods or services. During search operations at 12 different premises, officials discovered that many of the firms involved were non-existent. Several electronic devices were seized, and statements from individuals linked to the operation were recorded.
The Ministry also stated that multiple taxpayers admitted to relying entirely on the accused for GST return filings. Login credentials and filings were controlled centrally by the Chartered Accountant, enabling large-scale manipulation of tax data.
“The offences committed by the accused fall under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017. These are cognizable and non-bailable under Section 132(5) and punishable under Section 132(1)(i),” the Ministry said.
The Chartered Accountant was arrested under Section 69(1) of the CGST Act and produced before a Duty Magistrate on May 7. He was remanded to judicial custody for 14 days, until May 21.
The Finance Ministry emphasized that the case highlights a serious misuse of the GST system through impersonation, misuse of login credentials, and collusive circular trading. Further investigations are underway to determine the full extent of the fraud and identify other beneficiaries of the ineligible ITC.