A LinkedIn post by Vinod Gupta, a well-known tax educator and founder of VG Learning Destination, sparked a nationwide debate on corruption in the GST registration process. Gupta stated that he and his wife had been waiting for over 20 days to receive a GST number for their new business.
Bribery Accusation Spreads Quickly
He further alleged that if he were willing to pay a bribe, the GST number would be issued immediately. Soon, his post went viral. Many tax professionals and whistleblowers echoed similar complaints online.
Abhishek Raja Ram, a prominent voice on tax issues, raised alarm on X (formerly Twitter). He wrote, "CBIC has no idea of the ground reality of corruption in GST Registrations. Even VG Sir had to vent out his frustration. Top-level officers must take control to protect the country from corruption."
Finance Minister Responds
As the post gained traction, Finance Minister Nirmala Sitharaman reacted swiftly. She addressed the matter publicly on X. She said, “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.”
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
CBIC Issues Clarification
Soon after, the Central Board of Indirect Taxes and Customs (CBIC) issued a detailed clarification. They stated that Gupta’s GST application was filed on May 26 and was under the jurisdiction of the Delhi State GST, not Central GST. They also revealed that authorities raised a query due to a missing designation in the rent agreement. CBIC claimed Gupta had not yet responded to the notice.
CBIC Warns Against False Information
Furthermore, CBIC urged people not to share unverified information. They cautioned social media users against spreading misleading claims and advised verifying facts before posting.