Increase in Detection of Fake Input Tax Credit Claims by Central GST Officers
In a recent update, it has been revealed that the detection of fake Input Tax Credit (ITC) claims by Central GST officers saw a significant increase of 51 per cent, amounting to Rs 36,374 crore during the 2023-24 fiscal year. This information was presented to the Parliament by Minister of State for Finance, Pankaj Chaudhary, during a session on Monday.
The details shared by Minister Chaudhary shed light on the escalating cases of fake ITC during the 2022-23 and 2023-24 fiscal periods. Notably, the 2023-24 period witnessed a staggering 9,190 cases of fake ITC, involving a total amount of Rs 36,374 crore. Additionally, 182 individuals were arrested in connection with these cases, and voluntary deposits of Rs 3,413 crore were made during the investigation.
Comparatively, the preceding fiscal year of 2022-23 reported the detection of fake ITC amounting to Rs 24,140 crore in 7,231 cases. Furthermore, 152 individuals were arrested, and Rs 2,484 crore in taxes were voluntarily deposited as a result of these findings.
Furthermore, it is important to note that during the 2021-22 fiscal period, a total of 5,966 cases were booked by the central tax formation in relation to fake ITC.
Minister Chaudhary emphasized the challenges faced in tracking down the masterminds behind these fraudulent activities, as they operate complex webs of entities across multiple jurisdictions to generate fake ITC. He underscored that addressing these challenges requires coordination with various stakeholders, including law enforcement agencies.
The noteworthy surge in the detection of fake ITC cases underscores the necessity for robust measures to tackle this issue and prevent financial losses. The commitment to combat these fraudulent activities through collaboration and strategic enforcement is crucial in safeguarding the integrity of the taxation system.