GST officers detect over 29,000 bogus firms involved in fake ITC claims
During the October-December quarter, authorities detected 4,153 bogus firms suspected of being involved in Input Tax Credit evasion, amounting to around Rs 12,036 crore. Notably, 2,358 of these identified bogus firms were detected by the Central GST Authorities.
The government announced on January 7 that GST officers have identified 29,273 bogus firms engaged in fraudulent Input Tax Credit (ITC) claims amounting to Rs 44,015 crore in the eight months leading up to December 2023. This discovery was made during a concerted effort to combat fake registration. The actions taken against these fraudulent entities have resulted in saving revenue amounting to Rs 4,646 crore. More significantly, the action underscores the Centre's commitment to curbing tax evasion and maintaining the integrity of the Goods and Services Tax (GST) system.
During the October-December quarter, authorities identified 4,153 suspected bogus firms allegedly involved in ITC evasion, totaling around Rs 12,036 crore. The Central GST Authorities played a role in detecting 2,358 of these identified bogus firms.
In the efforts to detect and address bogus firms involved in suspected ITC evasion, Maharashtra topped the list with 926 such firms identified. Following Maharashtra, other states with significant numbers of detected bogus firms include Rajasthan with 507, Delhi with 483, and Haryana with 424.
During the December quarter, the detection of bogus firms involved in suspected ITC evasion protected revenue amounting to Rs 1,317 crore. Out of this, Rs 319 crore has already been realised, and Rs 997 crore has been protected by blocking ITC. The finance ministry reported that 41 individuals were arrested in connection with these cases, with 31 of these arrests made by the Central GST Authorities.
"Since the initiation of the special drive against fake registrations in mid-May 2023, a total of 29,273 bogus firms involved in suspected Input Tax Credit (ITC) evasion of Rs 44,015 crore have been detected. This has saved Rs 4,646 crore of which Rs 3,802 crore is by blocking of ITC and Rs 844 crore is by way of recovery. So far, 121 arrests have been made in the cases," it said in a statement.
