Fake ITC claims detection by GST officers up 51% at Rs 36,374 cr in FY24

Chaudhary said challenges in tracking fake ITC fraudsters relate to masterminds, who operate fake ITC generation through control, management of a complex web of entities created across jurisdictions

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Fake input tax credit (ITC) claims detection by central GST officers increased 51 per cent to Rs 36,374 cr in 2023-24, Parliament was informed on Monday.

Minister of State for Finance Pankaj Chaudhary shared details of the fake input tax Credit (ITC) cases booked by Central Tax formations during the 2022-23 and 2023-24 fiscals in a written reply to the Lok Sabha.

During 2023-24, 9,190 cases were booked by the central GST officers, involving fake ITC of Rs 36,374 cr. 182 persons were arrested and voluntary deposits of Rs 3,413 cr were made in the cases.

During 2022-23, Rs 24,140 cr fake ITC were detected in 7,231 cases. 152 persons were arrested and Rs 2,484 cr taxes were deposited voluntarily.

The Number of cases booked by central tax formation during 2021-22 was 5,966.

Chaudhary said the challenges in tracking fake ITC fraudsters relate to masterminds, who operate the fake ITC generation through control and management of a complex web of entities created across jurisdictions.

"Such challenges are being met through coordination with multiple stakeholders, including law enforcement agencies," he added.