Can a Certificate issued under CGST Rule 89(2)(m) by a CA, be made a basis, for Arrest u/s 69 read with section 132 of the CGST Act?

Mayank Mohanka | Last updated: 25 May 2022

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This article examines the recent arrest of two Chartered Accountants (CAs) by CGST authorities in Gurugram. The arrests were reportedly based on allegations of issuing false certificates for fraudulent Input Tax Credit (ITC) and refunds. The piece delves into Section 69 and Section 132 of the CGST Act, which govern the power of arrest and punishments for offences, respectively. It analyses whether a certificate issued by a CA under CGST Rule 89(2)(m) can legitimately form the basis for an arrest under these sections, considering the CA's limited statutory role in the refund process.

The recent unfortunate development of the arrest of two CAs by the Officers of CGST, Gurugram Commissionerate, on 18.5.2022, on the ground of alleged issuance of false Certificate in fraudulent availment of Input Tax Credit (ITC) and consequent refunds of around Rs.15 crores to the beneficiary party

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About the Author

Mayank Mohanka

Chartered Accountant

Sh. Mayank Mohanka is a seasoned Tax Practitioner, a Fellow Member of the Institute of Chartered Accountants of India and a Bachelor of Commerce, in Honours Degree from Shree Ram College of Commerce (SRCC), Delhi University. He is a Senior Partner in a Noida based established and reputed CA Firm, M/s S M Mohanka Ass ... Read more

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