A LinkedIn post by a prominent tax educator alleging corruption in the GST registration process prompted a response from Union finance minister Nirmala Sitharaman.
It all began when Vinod Gupta, founder of VG Learning Destination and a well-known figure in India’s finance education sector, wrote a detailed post on LinkedIn claiming that even after 20 days, he and his wife have been waiting for a GST registration number for a firm they wish to run together.
He also claimed that he was certain that the GST number would be allotted soon if he were prepared to pay a bribe.
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The post soon went viral and also caught the attention of tax compliance professionals and whistleblowers, including Abhishek Raja Ram, who accused GST officers of endemic corruption and urged top-level intervention.
"CBIC has no idea of the ground reality of corruption in GST Registrations. Their Executive Officers are so corrupt that even VG Sir has to vent out his frustration. Better top-level Officers take control of Registrations to save the country from corruption," Raja Ram wrote on X.
What Nirmala Sitharaman said
As the post gained traction, finance minister Nirmala Sitharaman stepped in publicly, making a pointed statement on X (formerly Twitter).
{{/usCountry}}As the post gained traction, finance minister Nirmala Sitharaman stepped in publicly, making a pointed statement on X (formerly Twitter).
{{/usCountry}}“It is our responsibility to serve taxpayers. But while doing that, we must be honest and transparent, because that's how we earn their trust. I believe the GST Board and officers will continue to be careful and quick in responding to people’s issues,” she said, addressing the controversy head-on.
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The Central Board of Indirect Taxes and Customs (CBIC) also issued a clarification, stating that Gupta’s application had been filed on May 26 and was under the Delhi State GST jurisdiction, not with the Central GST authorities. They explained that a query had been raised due to a missing designation on the rent agreement and that Gupta had yet to respond to the notice.
CBIC also rebuked the viral accusations, asking users not to circulate misleading information without verifying facts.
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