Rogue Tax Officer, 3 Lawyers, 500 Firms - Big GST Heist Uncovered In Delhi
New Delhi: A rogue tax officer, a trio of lawyers and a few other people masterminded a fraud, swindling Rs. 54 crore from the Goods and Service Tax (GST) Department in the national capital. It was exposed by the Anti-Corruption Bureau of the Delhi Government.
'The Special 7 And 500 Firms'
A GST officer, three lawyers, two transporters and the owner of a "company" were part of a plot involving 500 fake companies and fake invoices worth Rs. 718 crore to claim GST refunds worth Rs. 54 crore. The 500 companies only existed on paper and were purportedly involved in the import/export of medical goods to claim GST refunds.
Babita Sharma, the GST Officer (GSTO), hatched a plan with 96 fake firms and approved over 400 refunds worth Rs. 35.51 crore between 2021 and 2022. In the first year, only refunds worth Rs. 7 lakh were approved but later the remaining were approved.
Interestingly, the refunds were approved by the GSTO after filing the applications and approval was given within three days. In 2021, Ms Sharma was transferred to Ward 22 of the GST office and surprisingly, within a few days, over 50 firms applied for migration from Ward 6 to Ward 22, and was okayed within a short period. The migration raised alarm bells and the GST Vigilance Department sent teams to the offices of these firms. It led to the unearthing of the GST fraud, which had roots in its own office.
