2 CAs arrested for fraudulent GST Refund of Rs.20 Cr; GST Dept response to Detention

Groups of Chartered Accountants had called for a protest two days prior against the malicious arrest of two chartered accountants imprisoned by the DGGI, Gurugram CGST Department for the last 48 hours for providing an unjust enrichment certificate in a GST refund dispute.

Ultimately, in response to the alleged wrongful detention of two chartered accountants in a bogus GST refund claim, the GST Department announced that the two Chartered Accountants were detained and remanded to judicial prison for 14 days in connection with a Rs.20 crore GST Refund scam.

In Response to Protest, GST Department Officials taking it to twitter and stated, “On the basis of a specific complaint and careful data analysis, officers of the CGST Gurugram Commissionerate detected a case of fraudulent availment of ITC and consequent refunds of about Rs.20 Crore in the name of 8 firms found to be non – existent.”

“Investigation conducted thus far has revealed the involvement of three persons. One private person was arrested on 06.05.2022 and was remanded to judicial custody upto 21.05.2022. Further, two Chartered Accountants were arrested on 18.05.2022″

“Both CAs have been remanded to 14 days judicial custody by the jurisdictional Court. Investigations are continuing for tracing the beneficiaries of the refunds and the role of the officers, if any.”