GST-ITC fraud cases surged 41%, amount detected jumped 28% in Apr-Jan over full FY24
Total number of Input Tax Credit (ITC) fraud cases and amount detected in first 10 months of current fiscal has exceeded full year number of last fiscal by 41 per cent and 28 per cent respectively. However, the voluntary deposit is still lower than last fiscal.
Data sourced from GST Intelligence Wing for written response in the Lok Sabha showed that over 13000 ITC fraud cases came into light during April-January period of current fiscal.
The number of over 9000 during full fiscal of 2023-24. Similarly amount detected in ITC fraud cases during first 10 months was over Rs.46000 crore as against over Rs.36000 crore for last full fiscal. Data also revealed just over Rs.2000 crore was deposited voluntarily during current fiscal as against over Rs.3400 crore for full fiscal last year.
ITC fraud is mainly done through fake invoice. Under such mechanism, there is no real supply of goods or services but simply invoice issuance, which is used fraudulently to avail ITC (ITC).
Unscrupulous elements misuse the identity of other persons to obtain fake/ bogus registration under GST to defraud the Government.
Such fake/non-genuine registrations are used to fraudulently pass on ITC to unscrupulous recipients by issuing invoices without any underlying supply of goods or services or both. Fake registrations and issuance of bogus invoices for passing off fake ITC have become a serious problem, as fraudulent people engage in dubious and complex transactions, causing revenue loss to the Government.
