Nationwide GST Data Leak Exposed: CA Body Flags Racket, Demands Finance Ministry Crackdown
Nationwide GST Data Leak Exposed: CA Body Flags Racket, Demands Finance Ministry Crackdown
In a major revelation that has sent shockwaves through India’s tax and trade ecosystem, a large-scale illegal operation involving the sale of confidential GST data has been exposed, with Delhi, Ghaziabad, and Noida emerging as the epicentres of this illicit trade. The data trafficking ring, reportedly operated by a gang calling itself "Data Solution," is accused of running a thriving black market where sensitive taxpayer information is sold openly to the highest bidder.
The Surat Chartered Accountants Association (CAAS) was the first to raise the alarm, submitting an urgent representation to Union Finance Minister Nirmala Sitharaman. The letter outlines how the gang has been offering detailed GST data—such as GSTR-1, GSTR-2B, GSTR-3B, and e-Way Bills—for sale in package formats. Basic data is being priced at ₹8,000–₹10,000, while comprehensive bundles are sold for ₹15,000 to ₹25,000, covering up to six months’ worth of transactional history, HSN codes, and e-Way Bill trails.
An Organised Crime Operation Disguised as Business
Far from operating in the shadows, the data brokers reportedly run their operations from formal-looking offices, masquerading as data consultancy firms. These firms advertise “customised data packages” based on client needs, raising deep concerns about the security of the GST Network (GSTN) and its data protection infrastructure.
The scale and brazenness of the scam came into sharper focus after a leaked WhatsApp chat between a broker and a trader went viral, exposing casual conversations about the sale of “normal domestic data” and enhanced information bundles, suggesting a level of sophistication that points to organised crime.
“Data Being Sold Like Vegetables in a Market”
CAAS President, CA Hardik Kakadia, didn’t mince words while speaking to the media. “This is not just a data leak—it’s a direct assault on ethical trade practices. GST data is being sold like vegetables in a bazaar. Traders are buying this information to replicate entire supply chains of competitors,” he said.
According to Kakadia, the misuse of this confidential information poses a significant risk to legitimate businesses. “Imagine launching a new product while your competitor already has your blueprint. That’s the level of market distortion we are witnessing,” he warned.
New Business Entrants Using Leaked Data to Strategise
In a particularly alarming trend, CAAS sources revealed that even new market entrants are purchasing leaked GST data to assess competitors’ strengths, weaknesses, and pricing strategies before launching their own businesses. This misuse of data not only threatens existing businesses but also undermines the principle of fair competition.
Demand for Swift Government Action
CAAS has urged both the Gujarat Government and the Centre to act without delay. “We are not seeking token action. This calls for an immediate, high-level investigation, arrests, and systemic changes to plug these leaks,” the association’s letter to the Finance Minister stated.
The scandal has reignited debate over the robustness of data protection mechanisms within the government’s digital tax infrastructure. Experts are calling for an urgent cybersecurity audit of the GSTN to identify vulnerabilities and prevent further data breaches.
As pressure mounts on the Finance Ministry and GSTN authorities, the Indian business community is demanding swift, transparent, and decisive action to restore trust in the integrity of the GST system.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
