CA Arrested by South Delhi CGST Officials in Rs. 7.85 Crore GST ITC Fraud

In a major regulatory action, the CGST Delhi South Commissionerate has exposed a Goods and Service Tax (GST) fraud on a large scale. A chartered accountant has claimed a fake Input Tax Credit (ITC) worth approximately Rs. 7.85 crore.

After deep investigation, authorities exposed misuse of more than 80 GSTINs (Goods and Services Tax Identification Numbers), mostly in the Palam and Dwarka areas. These were connected to the email IDs and phone numbers of a chartered accountant. A main group of 31 GST numbers was found to be involved in circular trading, where no real goods or services were actually sold.

Searches were carried out at 12 locations, and many of the firms were found to be fake or not operating. Investigators took electronic devices that could help in the case and recorded statements from the people involved. Several taxpayers admitted that they fully depended on the chartered accountant for GST filings, and he alone managed all the login details and submissions.

The crime is accepted by the accused chartered accountant under u/s 132(1)(b) and 132(1)(c) of the CGST Act, 2017, which is a major and strict bail offense under Section 132(5) and punishable under Section 132(1)(i) of the Act ibid. The accused was taken into custody as per Section 69(1) of the CGST Act, 2017, and was presented before the duty magistrate on May 06, 2025. The duty magistrate has sent him to jail for 14 days, until 21st May 2025.

The case reflects the abolition of the GST framework via impersonation, credential misuse, and collusive circular trading. The investigation is in progress under the CA, arrested by Delhi South CGST Officials in GST ITC Fraud Worth Rs. 7.85 Crore to expose the full scam and find all criminals involved in this crime.