The Jawahar Nagar police have registered a case against a tax consultant for allegedly misusing a client's GST registration number to carry out fraudulent transactions worth over Rs 73.63 lakh.
The FIR, filed on the complaint of Madhusudan Soni, proprietor of Shri Rajureshwar Traders, alleges that the accused, who was entrusted with handling GST compliance for the firm, breached professional trust and manipulated the GST portal to fabricate business transactions.
Fraudulent GST Transactions Across Multiple Financial Years
According to the complaint, between FY 2022-23 and FY 2024-25, the accused allegedly uploaded fabricated purchase and sale invoices on the complainant's GST portal in the names of entities such as Dhruv Trading, MM Trading, Global Trading and Company and others. None of these entities had any association with the complainant's business.
By inserting these false entries, the accused is suspected of generating fraudulent transactions involving goods and services tax totalling Rs 73,63,367.
Misuse of GST Account for Income Tax Payment
In addition to the GST fraud, the FIR states that during FY 2023-24, the accused allegedly used the complainant's GST account without consent to pay Rs 1,37,345 in income tax, an act investigators believe was part of the broader fraudulent scheme.
Charges and Investigation
The case has been registered under Sections 338 and 340(2) of the Bharatiya Nyaya Sanhita (BNS) for cheating, forgery and criminal breach of trust.
Jawahar Nagar police inspector Sachin Kumbhar confirmed that investigators are gathering transaction records, bank account details, and digital evidence to verify the authenticity of the invoices and trace the money trail. "We have also initiated steps to summon the accused and take appropriate legal action," he added.
The case highlights growing concerns about the misuse of GST credentials by trusted intermediaries, prompting calls for tighter monitoring and stricter compliance checks.
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