In a significant action against Goods and Services Tax (GST) evasion, officials from the Central GST Delhi South Commissionerate have busted a major Input Tax Credit (ITC) fraud amounting to approximately ₹7.85 crore. The key accused in the case, a South Delhi-based Chartered Accountant (CA), has been arrested for orchestrating the fraud by misusing GST credentials and engaging in circular trading through a network of bogus firms.
Investigations revealed that the accused misused more than 80 GSTINs (Goods and Services Tax Identification Numbers), most of which were registered in the Palam and Dwarka areas of Delhi. These GSTINs were found linked to the Chartered Accountant’s personal email addresses and mobile numbers. A core group of 31 GSTINs was actively engaged in circular trading—raising invoices without any actual movement of goods or services.
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Searches were conducted at 12 premises linked to the network, where it was found that many of the entities existed only on paper. During these operations, officials seized several electronic devices containing incriminating data and recorded the statements of involved individuals. Many taxpayers admitted to having surrendered complete control of their GST compliance to the Chartered Accountant, including login credentials for filing returns.
The offences fall under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which deal with fraudulent availment of ITC and issuance of invoices without supply of goods. These are cognizable and non-bailable offences under Section 132(5), and attract punishment under Section 132(1)(i) of the same Act. Acting under Section 69(1) of the CGST Act, officials arrested the accused on May 7, 2025. He was produced before the Duty Magistrate, who remanded him to 14 days of judicial custody till May 21, 2025.
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Authorities believe this case reveals systemic abuse of the GST framework through impersonation, credential misuse, and collusive activities.
The investigation is ongoing to determine the full extent of the fraud and identify other beneficiaries who may have claimed ineligible ITC through the bogus network.
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