NEW DELHI: GST officers have uncovered an input tax credit (ITC) fraud amounting to Rs 7.85 crore by a Chartered Accountant based in South Delhi.
The Chartered Accountant has been arrested and presented before the Duty Magistrate, who has remanded him to judicial custody until May 21, 2025, as per a statement from the finance ministry.
Investigations have revealed the misuse of more than 80 GSTINs (Goods and Services Tax Identification Numbers) primarily in the Palam/Dwarka area, all linked to the Chartered Accountant’s email IDs and contact numbers. A core group of 31 GSTINs involved in circular trading has been identified, with no actual supply of goods or services.
“The Central GST Delhi South Commissionerate has uncovered a large-scale fraud involving fraudulent Input Tax Credit (ITC) claims totaling Rs 7.85 crore by a Chartered Accountant based in South Delhi,” the statement said.
Delhi South CGST officials bust #GST ITC fraud worth ₹7.85 crore; Chartered Accountant arrested
— PIB India (@PIB_India) May 8, 2025
Investigations reveal misuse of over 80 GSTINs with a core group of 31 GSTINs engaged in circular trading, with no actual supply of goods or services
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Search operations were carried out at 12 locations, and multiple firms were found to be non-existent. Various electronic devices relevant to the investigation were seized during the searches, and statements from relevant individuals were recorded.
Several taxpayers admitted to relying solely on the Chartered Accountant for their GST filings, with login credentials and filings controlled centrally by him, the statement further added.
This case highlights a systemic abuse of the GST framework through impersonation, misuse of credentials, and collusive circular trading.
Investigations are currently ongoing under the CGST Act, 2017, to uncover the full extent of the fraud and identify all beneficiaries of the ineligible input tax credit.
