Nirmala Sitharaman Responds To Viral Allegations Of Corruption In GST Registration Process

Finance Minister Nirmala Sitharaman addressed allegations of corruption in GST registration after a LinkedIn post by tax expert Vinod Gupta goes viral. CBIC issued clarification.

Union Finance Minister Nirmala Sitharaman addresses a gathering (IANS)

Union Finance Minister Nirmala Sitharaman has answered queries raised in a viral LinkedIn post leveling allegations of corruption in the Goods and Services Tax (GST) registration process, vouching for the government's intention of ensuring transparency and provision of services on time.

The reply came after Vinod Gupta, director and founder of VG Learning Destination, stated in an open social media post that he was being forced to pay a bribe to get a GST registration number for a company that involved his daughter and wife. Gupta stated that he had applied for the GST registration 20 days ago and still had not received it, commenting, "Tomorrow I will commit a crime. Giving and taking bribery: both are crimes."

In a public post on X (formerly Twitter), the Finance Minister Sitharaman wrote:

"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

The row heated up with tax compliance specialist Abhishek Raja Ram also venting on social media, tagging the Central Board of Indirect Taxes and Customs (CBIC) and accusing systemic corruption in GST registrations. "CBIC has no idea of the ground reality… even VG Sir has to vent out his frustration," he posted, calling for senior officials to step in.

CBIC has no idea of 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.

Raise your voice
Before… pic.twitter.com/hcuaHZ47BK

— Abhishek Raja "Ram" (@abhishekrajaram) May 30, 2025

Acting quickly, the CBIC released a clarification that Gupta's GST application was filed on May 26 and would be dealt with by the Delhi State GST, not the Central GST authorities. The board informed that the application was processed, but an inquiry was made as the rent agreement produced as address proof lacked the necessary designation.

"The candidate was alerted to the inquiry, but yet to get a response," the CBIC said, cautioning Raja Ram against spreading unsubstantiated information.

@FinMinIndia
Dear @abhishekrajaram

The 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 episode has retriggered debate about grassroots-level issues in GST rollout, particularly bureaucratic delays and charges of corruption. It also highlights how social media is increasingly being used to pin down institutions and elicit official reactions.

Authorities have reaffirmed their pledge to treat taxpayer issues expeditiously while upholding procedural integrity.