Officials from the Central Goods and Services Tax Commissionerate Delhi South busted a large-scale GST Input Tax Credit (ITC) fraud involving a South Delhi-based chartered accountant. The accused is alleged to have fraudulently claimed ITC amounting to approximately Rs 7.85 crore by misusing more than 80 GST identification numbers (INs), mostly linked to the Palam and Dwarka areas of the capital.
The investigation revealed that the CA used his own email addresses and contact numbers to control these GST registrations. A group of 31 GSTINs was found to be engaged in circular trading without any actual supply of goods or services.
“Search proceedings were conducted at 12 premises, and multiple firms were found non-existent. During searches, several electronic devices relevant to the investigation were seized, and statements of the relevant people were recorded. Multiple taxpayers admitted to have been relying entirely on the Chartered Accountant for GST filings, with login credentials and filings centrally controlled by him,” said officials.
The fraudulent activities fall under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017. These are cognisable and non-bailable offences as per Section 132(5), and carry punishment under Section 132(1)(i) of the Act, said officials.
The accused was arrested under Section 69(1) of the CGST Act, 2017, and presented before the duty magistrate on May 7. He has been remanded to judicial custody for 14 days, until May 21.
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