2 Chartered Accountants detained by GST Department over an alleged Rs 15 crore GST refund scam

GST Department on Thursday detained 2 Chartered Accountants (CA) over an alleged Rs 15-crore GST refund scam. As per sources, their involvement is merely limited to issuing a CA Certificate for Unjust Enrichment.

Members of the Institute of Chartered Accountants of India (ICAI) stated that GST Department has detained 2 Chartered Accountants for more than 48 hours over an alleged GST Refund of Rs 15 Cr. As per them, the arrest is “absolutely wrong”. The refund was given with the officials’ knowledge, according to ICAI members. Rather than punishing the chartered accountants, the protestors contended that action should have been taken against the benefiting party, a trader and lapsed GST official.

“Also Not only Chartered Accountants, but the GST Officials should have also done the scrutiny, before issuing the refund. Then why only the 2 CA’s are being mistreated.” another protester said.

As per Sources, Following the protest, NIRC Chairman, NIRC VICE Chairman, and Gurgaon Branch Chairman were also detained by the Department.

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Another CA added “There has been incidence when It has been observed that the Powers delegated to the officials of GST are being misused by way of harassing CAs without any reason. The recent incident that took place yesterday in Gurgaon wherein few Chartered Accountants have been detained by DGGI Gurgaon illegally.”

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This has led to protests by not only the Chartered Accountant members but also by the members of the Central and regional councils.

CA’s are also suggesting that it is time to have an Indemnity insurance policy for Practicing CA that compensates for unexpected damages or losses including unexpected events that malign his/her reputation based on allegations & affect his career and CA Protection Bill.

One of the Council members has Tweeted that the ICAI today discussed agenda related to harassment with CA’s and unfair treatment with the professionals. Soon some SOP will be issued in this regard. The representation will also be made to the Ministry in this regard.