CA Arrested in Rs 7.85 Crore GST ITC Fraud, 80 Fake GSTINs Unearthed

A chartered accountant was arrested in Mumbai for allegedly masterminding a ₹7.85 crore GST input tax credit fraud involving 80 fake firms. The accused created a network of shell companies using stolen PAN and Aadhaar details to generate bogus invoices without actual goods movement. Investigation revealed the CA operated 12 fake GSTINs himself while controlling others through benamidars. The racket specialized in circular trading of electronic goods to claim fraudulent ITC across five states. Authorities have frozen 18 bank accounts and identified ₹2.3 crore in movable assets. This case highlights growing professional involvement in sophisticated GST evasion schemes. The Institute of Chartered Accountants of India has initiated disciplinary proceedings, signaling zero tolerance for member misconduct. The arrest comes amid a nationwide crackdown on fake ITC claims exceeding ₹12,000 crore detected in FY25.