In a significant crackdown on Goods and Services Tax (GST) evasion, authorities have identified fraudulent Input Tax Credit (ITC) claims worth ₹35,132 crore, involving 17,818 fake firms, between April and October 2024. Minister of State for Finance, Pankaj Chaudhary, shared these details in a written response to the Lok Sabha on Monday.
Coordinated Action Against ITC Fraud
The detection came as part of a coordinated special drive conducted between August 16 and October 30, 2024, by central and state GST authorities. Regular measures such as data analytics and intelligence gathering were employed to uncover these fraudulent activities.
During the period, 18,876 cases of ITC fraud were identified. Authorities managed to save ₹6,484 crore, with ₹5,422 crore blocked by halting the fraudulent ITC claims and ₹1,062 crore recovered directly.
Arrests and Legal Action
The operation also resulted in the arrest of 69 individuals implicated in these fraudulent activities during the current fiscal year up to October.
Government's Commitment to Tackle GST Evasion
Minister Chaudhary reaffirmed the government's commitment to addressing GST evasion through proactive and stringent measures. “Regular action is taken to detect fake firms through data analytics and other intelligence,” he said, emphasizing the importance of technology-driven enforcement to curb tax fraud.
The Bigger Picture
The detection and prevention of ITC fraud are crucial for maintaining the integrity of India’s GST framework. By leveraging advanced analytics and intelligence tools, the government aims to reduce revenue losses and enhance compliance within the tax system.
The success of this coordinated drive highlights the effectiveness of collaborative efforts between central and state authorities in combating financial crimes, ensuring transparency, and securing the nation's economic interests.
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