Quick Summary
The Government of India has confirmed a sharp rise in GST evasion through fake invoicing, including schemes involving sleeping modules and inactive pharmaceutical firms used as fronts for fraud. The details were shared by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to an unstarred question in the Rajya Sabha. Over 55,000 Fake Invoicing Cases Detected in Three Years According to Central GST authorities, fake invoicing and ITC fraud cases have surged in recent years.
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FAQ :
The main concern is the alarming rise in GST evasion through fake invoicing and the exploitation of dormant or inactive companies, including pharmaceutical firms, to commit fraud.
In the financial year 2024-25, a total of Rs 58,772 crore was detected in cases involving fake GST firms and invoicing.
Yes, the government has acknowledged that sleeping or inactive pharmaceutical companies have been used to generate fake invoices and commit Input Tax Credit (ITC) fraud.
The government has implemented technology-driven measures such as mandatory invoice matching, OTP-based PAN verification, Aadhaar biometric authentication, physical verification in high-risk cases, and geo-tagging of business premises.
Yes, fraudulent Input Tax Credit (ITC) availment without an invoice is now a cognizable and non-bailable offence, with penalties applicable to beneficiaries.
The number of fake invoicing cases and the amount detected have surged significantly. For instance, cases rose from 7,231 involving Rs 24,140 crore in 2022-23 to 15,283 involving Rs 58,772 crore in 2024-25.
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