GST officers unearth Rs 7.85 cr ITC fraud by Delhi-based CA

New Delhi, May 8 (PTI) GST officials have unearthed an input tax credit (ITC) fraud of Rs 7.85 crore by a South Delhi-based Chartered Accountant.

The Chartered Accountant was arrested and produced before the Duty Magistrate, who remanded him to judicial custody for 14 days till May 21, 2025, a finance ministry statement said.

Investigations revealed misuse of over 80 GSTINs (Goods and Services Tax Identification Numbers), mainly in the Palam/Dwarka area, linked to the Chartered Accountant's email IDs and contact numbers. A core group of 31 GSTINs engaged in circular trading was identified, with no actual supply of goods or services.

"The Central GST Delhi South Commissionerate has uncovered a fraud on large-scale, involving fraudulent Input Tax Credit (ITC) claims amounting to Rs 7.85 crore by a South Delhi-based Chartered Accountant," the statement said.

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 having been relying entirely on the Chartered Accountant for GST filings, with login credentials and filings centrally controlled by him, the statement added.

The case highlights a systemic abuse of the GST framework through impersonation, credential misuse, and collusive circular trading.

Investigations are ongoing under the CGST Act, 2017, to uncover the full scale of the fraud and identify all beneficiaries of the ineligible input tax credit. PTI JD BAL BAL