GST Fraud Worth Rs 7.85 Crore Busted In South Delhi, CA Arrested

New Delhi: In a significant crackdown, a Central Goods and Services Tax (CGST) group has exposed a fraud on a large-scale involving fraudulent enter tax credit score (ITC) claims amounting to just about Rs 7.85 crore by means of a South Delhi-based chartered accountant who has been arrested, it was once introduced on Thursday. Investigations published misuse of over 80 GSTINs (Goods and Services Tax Identification Numbers), principally within the Palam/Dwarka house, related to the chartered accountant’s e-mail IDs and phone numbers, consistent with a Finance Ministry observation.

A core workforce of 31 GSTINs engaged in round buying and selling was once known, and not using a exact provide of products or products and services. According to the ministry observation, seek court cases had been performed at 12 premises, and a couple of companies had been discovered non-existent. During searches, a number of digital units related to investigation had been seized, and statements of the related folks had been recorded, the ministry knowledgeable.

Multiple taxpayers admitted to having been depending solely at the chartered accountant for GST filings, with login credentials and filings centrally managed by means of him. “The offences committed by the accused are covered u/s 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which is cognizable and non-bailable offence under Section 132(5) and punishable under Section 132(1)(i) of the Act ibid,” mentioned the Ministry.

“Accordingly, the said chartered accountant was arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate on 07.06.2025, who remanded him to judicial custody for 14 days till 21.05.2025,” it knowledgeable.

The case highlights a systemic abuse of the GST framework thru impersonation, credential misuse, and collusive round buying and selling. The Finance Ministry additional said that investigations had been occurring below the CGST Act, 2017, to discover the overall scale of the fraud and establish all beneficiaries of the ineligible enter tax credit score.