GST Fraud Shock: Ahmedabad Trader Files Case Against Former Tax Consultant

A trader from Ahmedabad who is 76 years old is now struggling to clear his name after a trusted financial advisor allegedly turned his company into a front for tax evasion. The trader was running an industrial gas equipment business for more than two decades in Sarangpur but he received a tax demand notice for over Rs 1.2 crore. His former tax consultant had filed fraudulent GST returns allegedly and also generated fake invoices in the name of his firm, which resulted in tax recovery notices.

The businessman pressed charges of cheating and criminal breach of trust against his former adviser.

The businessman first relied on a CA Firm for his business but in 2015 an employee at that firm who is the accused left to start his own consultancy. He further convinced the trader to give all his accounting and taxation work to him, as he is familiar with the firm’s finances.

The trouble started in 2017 with the rollout of the GST regime. The accused set up the firm’s GST account using the trader’s mobile number but linked it to an email address that only he could access. The businessman never asked for copies of filed returns and trusted blindly in his consultant.

In dec 2025 the trader received GST show-cause notices demanding a recovery of Rs 54.33 lakh for the FY 2019-20 and Rs 65.59 lakh for FY 2021-22 which added up to a total of Rs 1.2 crore.

When being confronted by the trader the accused said that the notices were a mistake and promised to fix the matter through his internal department contacts. After being suspicious of the consultant’s excuses, the trader checked the official GST portal and spoke directly with the tax officials and discovered that massive purchases and sales had been made under his firm’s name between 2019-20 and 2022-23. It was a period where his actual business was heavily inactive. The consultant used the firm’s name to generate fake invoices and supply them to unknown traders without the owner’s consent.

This case has been registered with the Khadia police and a full investigation is ongoing.