New Delhi: Finance Minister Nirmala Sitharaman has stepped into an online debate regarding alleged malpractices in the Goods and Services Tax (GST) registration process. Her statement came in direct response to a LinkedIn post by Vinod Gupt in which he claimed he was being effectively “forced to commit a crime” by paying a bribe to secure a GST identification number for his firm.
Gupta is the founder and director of VG Learning Destination. His post went viral after the finance minister responded to him online.
Gupta expressed his frustration in the post, stating that despite applying for a GST number for a firm, in which his wife and daughter are partners, 20 days prior, it had yet to be allotted. He complained that objections kept arising, leading him to conclude, “I know I will get it after committing the crime.”
He 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.”
A detailed response from @cbic_india. To provide service to the taxpayer is our duty. While so serving the taxpayers, transparency and integrity are crucial in earning their trust and confidence. Confident that the Board and the field formations will remain sensitive and… https://t.co/OwuHQ5yKhe
— Nirmala Sitharaman (@nsitharaman) May 31, 2025
Responding to the outcry, Sitharaman emphasised the government’s commitment to taxpayers. “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,” she stated, expressing confidence that the GST Board and its officers would continue to be diligent and swift in addressing public concerns.
The LinkedIn post quickly caught the attention of social media users, including Tax Compliance and Litigation Expert Abhishek Raja Ram. Raja Ram amplified the allegations, tagging the Central Board of Indirect Taxes and Customs (CBIC) and accusing officials of widespread corruption within the GST registration framework. He urged top management to intervene, claiming the CBIC was unaware of the “ground reality of corruption.”
However, the CBIC was quick to issue a clarification, refuting the narrative presented. The board clarified that Gupta’s application was filed on May 26 and was assigned to the Delhi State GST jurisdiction, not the central authorities. They asserted that the application was processed promptly, but a query was raised due to a missing designation on the rent agreement submitted.
@FinMinIndia
Dear @abhishekrajaramThe fact of the case of Shri Vinod Gupta who wrote about GST registration issue on LinkedIn are as below:
👉The application was filed this week on 26th May (Monday) which was assigned to Delhi State GST. The Central GST authorities had no…
— CBIC (@cbic_india) May 31, 2025
The CBIC stated that the applicant was informed of this discrepancy, but there had been no response from his side. The board also advised Raja Ram against circulating inaccurate information without verifying the facts.
