GST ITC fraud
In a significant action against GST fraud, the CGST Delhi South Commissionerate has detected a large-scale scam involving fraudulent Input Tax Credit (ITC) claims totaling approximately Rs. 7.85 crore. The fraud is linked to a Chartered Accountant based in South Delhi. Investigations found that over 80 GST Identification Numbers (GSTINs), mostly in the Palam and Dwarka areas, were connected to the CA’s email addresses and phone numbers. A core group of 31 GSTINs was involved in circular trading with no actual supply of goods or services.
Search operations were carried out at 12 premises, many of which were found to be non-existent. During these searches, various electronic devices were seized for investigation, and statements from key individuals were recorded. Several taxpayers admitted to depending entirely on the Chartered Accountant for GST filings, with the CA having centralized control of their login credentials and filings.
The accused is charged under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017—offences which are cognizable and non-bailable under Section 132(5), and punishable under Section 132(1)(i). He was arrested under Section 69(1) of the Act and presented before the Duty Magistrate on June 7, 2025, who remanded him to judicial custody until May 21, 2025.
The case reveals systemic misuse of the GST system through impersonation, credential misuse, and collusive circular trading. Investigations under the CGST Act, 2017 are ongoing to determine the full extent of the fraud and identify all beneficiaries of the ineligible ITC.
