Quick Summary
GST officers from central and state departments have unearthedfraudulent Input Tax Credit (ITC) claims amounting to Rs 15,851 crore in the April-June quarter of FY26, marking a sharp 29% increase from the same period last fiscal. This spike in ITC fraud has occurred despite a decline in the number of fake firms detected year-on-year (YoY), officials said. During Q1 FY26, 3,558 fake firms were identified as involved in these scams, compared to 3,840 fake entities unearthed in Q1 FY25. Officials
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience.
FAQ :
In the first quarter of FY26 (April-June), fraudulent ITC claims amounting to £15,851 crore were detected.
The amount of fake ITC claims has increased by 29% in Q1 FY26 compared to the same period last fiscal year.
Yes, 3,558 fake firms were identified in Q1 FY26, which is fewer than the 3,840 fake entities detected in Q1 FY25.
During Q1 FY26, authorities arrested 53 individuals and recovered £659 crore. They also suspended or cancelled GST registrations, blocked ITC, and can impose penalties and imprisonment.
Measures include nationwide drives to weed out non-existent registrations, tightened GST registration processes with physical verification for risky applicants, and a panel of ministers examining sector-specific tax evasion.
CAclubindia
