GST Officers Uncover Rs.61,545 Cr ITC Fraud via 25,009 Fake Firms in FY25
Central and state GST officers have detected 25,009 fake firms involved in fraudulently passing input tax credit (ITC) worth Rs.61,545 crore during 2024-25, officials said.
During the 2024-25 fiscal ending March 2025, Central and state GST officers recovered Rs.1,924 crore by way of blocking ITC and arrested 168 persons.
As per data on ITC frauds unearthed by Central and State GST officers, over the two years 2023-24 and 2024-25, 42,140 fake firms were detected, which were involved in fraudulently generating ITC of over Rs.1.01 lakh crore. Rs.3,107 crore was recovered by way of blocking of ITC, and 316 arrests have been made.
"The Central and State Governments and GSTN have taken various steps to prevent fake ITC claims, including providing intelligence inputs, detecting fraudulent registration, and suspicious e-way bill activity," an official told PTI.
Under the Goods and Services Tax (GST) regime, ITC refers to the taxes paid by businesses on purchases from suppliers. This tax can be claimed as a credit or deduction at the time of paying the final output tax.
Dealing with fake ITC has been a major challenge for the GST administration as unscrupulous elements were creating fake firms just to claim ITC and defraud the exchequer.
