GST officers detect Rs 35,132 cr ITC evasion by over 17k fake firms: Govt

New Delhi, Dec 9, 2024

A total of 18,876 ITC fraud cases were detected involving 17,818 fake firms with suspected ITC evasion of Rs 35,132 crore during fiscal 2024-25 (April-October)

A dedicated unit of tax sleuths tracking cases of evasion in the pre-goods and services tax (GST) era may cease to exist from financial year 2025-26 (FY26).

GST officers have detected cases of ITC evasion of Rs 35,132 crore by 17,818 fake firms between April-October and arrested 69 persons, Parliament was informed on Monday.

In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said regular action is taken to detect fake firms through data analytics and other intelligence by the central and state authorities.

Also, a coordinated special drive was launched between August 16 and October 30 to detect fake firms.

"A total of 18,876 ITC fraud cases were detected involving 17,818 fake firms with suspected ITC evasion of Rs 35,132 crore during fiscal 2024-25 (April-October)," Chaudhary said.

This has saved Rs 6,484 crore of which Rs 5,422 crore by blocking of ITC and Rs 1,062 crore by way of recovery.

A total of 69 arrests have been made in the cases during the current fiscal till October.

[Press Trust of India]