Gurudas Mallik Thakur Vs Commissioner of Central Goods And Service Tax & Anr. (Delhi High Court)
Delhi HC Clarifies ‘Any Person’ Under Section 122(1A) GST: A Game-Changer for Tax Enforcement By Akash Verma, Sr. Standing Counsel for CGST
The Delhi High Court in a recent judgment titled as Gurudas Mallik Thakur v. Commissioner CGST & Anr. [W.P. (C) 5083/2025; 2025:DHC:2957-DB] has significantly clarified the scope of liability under the GST framework, particularly concerning company directors involved in fraudulent Input Tax Credit (ITC) claims and tax evasion. The court, agreeing with my submissions on behalf of the Central Goods and Services Tax (CGST) Department, ruled that the term “any person” under Section 122(1A) of the CGST Act includes both taxable and non-taxable persons. This decision ensures that individuals benefiting from fraudulent transactions cannot evade responsibility simply by arguing that they are not registered taxpayers.
The case involved the directors of M/s Planman HR Private Limited, who challenged the penalties imposed on them under the CGST Act. The ruling confirms that even non-taxable persons can be held accountable if they benefit from tax evasion or facilitate GST fraud.
This decision has major implications for businesses and tax enforcement. For business owners, it emphasizes the necessity of maintaining strict GST compliance, as senior management can be personally liable for fraudulent activities. For tax authorities, it strengthens their ability to take action beyond taxable persons, closing loopholes that allowed individuals to evade liability while reaping illegal tax benefits. Moreover, this ruling serves as a wake-up call for corporate governance, reinforcing that financial misconduct at the leadership level will not go unchecked.
