With India needing to win the final Test at the SCG to level the series and retain the trophy, Boland proved the biggest thorn in their side on Friday as they were bowled out in the final session.
The Victorian finished with 4-31, taking the four most important wickets in India's line up in Virat Kohli, Rishabh Pant, Yashavi Jaiswal and Nitish Kumar Reddy.
India's quick demise left Australia with 16 minutes to bat before stumps, meaning a tricky period for openers Sam Konstas and Usman Khawaja.
It was a nightmare day for India, who axed captain Rohit Sharma for the decider and then won the toss under heavy cloud cover and on a green wicket.
Boland continues to be considered Australia's back-up paceman, playing only 13 of 37 Tests since his magical debut in Melbourne three summers ago, and having been called up for the Boxing Day Test to replace the injured Josh Hazlewood.
But there is now a very clear argument he belongs in Australia's first-choice attack after another record-breaking day in Sydney.
The 35-year-old's 20 overs took him past 2000 balls at Test level, a mark generally considered as a qualifier to be recognised on the all-time bowling averages list.
Boland now has 50 wickets at 18.88, placing him above Jasprit Bumrah with the best average of any bowler with 2000 or more balls since Englishman Frank Tyson (18.56) in the 1950s.
Scott Boland is mounting a case to be a first-choice selection in the Australian team. (Dan Himbrechts/AAP PHOTOS)
Friday was potentially the best Boland has bowled since his debut, swinging the ball a long way and seemingly having it on a string.
He had Jaiswal (10) caught at slip by debutant Beau Webster in his first over, before he looked to have Kohli first ball when he edged to slip.
Steve Smith went low and scooped the ball up to Marnus Labuschagne in the gully, but third-umpire Joel Wilson ruled the ball had touched the ground on the way.
Boland eventually got his man though, removing Kohli for the fourth time in his career when the Indian megastar edged to Webster in the slips after lunch on 12.
Debutant Beau Webster was in the action early by taking the catch to dismiss Yashasvi Jaiswal. (Dan Himbrechts/AAP PHOTOS)
The seamer should have also had Rishabh on 10 when Smith put him down, but later wore down the left-hander and had him caught pulling on 40.
Reddy went next ball when the Melbourne century-maker edged Boland to slip, before the hat-trick ball just beat Washington Sundar's edge.
Mitchell Starc bagged 3-49 in the rout, including Ravindra Jadeja lbw for 26 and KL Rahul on four when the opener picked out square leg early in the day.
Pat Cummins also had more DRS drama off his bowling when Washington Sundar was out caught down legside in the final session.
Like Jaiswal in Melbourne, Washington was given not out on the field before snicko showed a small spike as the ball went close to the glove and through to Alex Carey.
Pant's patient innings was eventually brought to an end by Pat Cummins at mid-on. (Dan Himbrechts/AAP PHOTOS)
Needing a win to level the series, India spent most of Friday being strangled by Australia's bowlers in a test of patience and grit.
Jadeja and Pant wore body blows from Starc, while Beau Webster sent down 13 overs of stump-to-stump bowling on debut and went for only 29 runs.
The Tasmanian also took fine catches to remove Jaiswal and Kohli, with the second a good snare low to his right.
A series win over India would hand Australia back the Border-Gavaskar trophy, and would mean Pat Cummins' side hold every bilateral Test series trophy available to them.
Victory at the SCG would also be enough to ensure Australia's qualification for the World Test Championship final against South Africa at Lord's in June.
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