FM Sitharaman responds to viral bribery allegation in GST registration process

Finance Minister Nirmala Sitharaman emphasized that serving taxpayers is a core duty, but it must be done with honesty and transparency to build public trust.

Union finance minister Nirmala Sitharaman responded to a viral social media post alleging corruption in the GST registration process, asserting the government's commitment to transparency and swift resolution of taxpayer issues.

The controversy erupted after a LinkedIn post by Vinod Gupta, founder and director of VG Learning Destination, went viral.

Gupta claimed he would be compelled to "commit a crime" by offering a bribe in order to obtain a GST registration number for his firm.

In a LinkedIn post that has since gone viral, Gupta claimed he had not received a GST registration number, even though he had applied 20 days earlier for a firm involving his wife and daughter. He wrote, "Tomorrow I will commit a crime. Giving and taking bribery: both are crimes. I applied for a GST registration number for a firm in which my wife and daughter are partners 20 days ago."

In the social media post, Gupta mentioned, "Objections started coming in. Till today, the number has not been allotted. So, I've decided to get the GST number tomorrow. I know I will get it after committing the crime."

Responding on the post, Sitharaman emphasized that serving taxpayers is a core duty, but it must be done with honesty and transparency to build public trust. She expressed confidence that the GST Board and its officials would remain vigilant and responsive in addressing people's concerns.

Gupta’s post sparked widespread debate online including Tax Compliance and Litigation Expert Abhishek Raja Ram. He tagged the Central Board of Indirect Taxes and Customs (CBIC), accusing the GST registration process of being plagued by corruption. He also criticized the officials managing the department and urged senior leadership to step in and take action.

His post read, "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."

In response, CBIC issued a clarification stating that Gupta’s application was submitted on May 26 and is under the Delhi State GST jurisdiction, not Central GST. The board added that the application was processed promptly, but a query was raised due to a missing designation on the rent agreement. CBIC said the applicant has yet to respond to the query.

Finance Minister Sitharaman, referring to the matter, stressed the importance of integrity in public service saying, "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."

CBIC also urged social media users to verify facts before making public allegations, cautioning against the spread of misinformation.