In a major crackdown on the Goods and Services Tax fraud, the CGST, South-Delhi commissionerate has unearthed alleged fraudulent Input Tax Credit (ITC) claims amounting to approximately Rs 7.85 crore by a chartered accountant.

In this action against tax fraud, the probe revealed alleged misuse of over 80 GSTINs (Goods and Services Tax Identification Numbers), mainly in South West Delhi’s Palam and Dwarka area, which was linked to a Chartered Accountant’s email addresses and contact numbers.

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Accordingly, as per due legal process, the alleged CA was arrested under Section 69(1) of the CGST Act, 2017, and produced before Duty Magistrate on Wednesday, who remanded him to judicial custody for 14 days.

In this entire episode, a core group of 31 GSTINs engaged in circular trading was identified, with no actual supply of goods or services, an official statement said on Thursday.

Searches were conducted at 12 locations in this regard, where multiple firms were found to be non-existent.

During the searches, several electronic devices relevant to the probe were seized, and statements of the relevant people were recorded.

In the ongoing investigation multiple taxpayers admitted to have been relying entirely on the CA for GST filings, wherein the login credentials and filings were centrally controlled by him.

The offences committed by the accused covered multiple sections of the CGST Act, 2017, which amounted to a cognizable and non-bailable offence under relevant section.

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

Further investigations are underway to uncover the full scale of the fraud, and identify all beneficiaries of the ineligible Input tax credit.