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In a major crackdown on tax evasion under the GST regime, Central and State GST authorities have unearthed 25,009 fake firms involved in fraudulently claiming ITC worth a staggering Rs 61,545 crore during the financial year 2024-25, officials said. The concerted efforts of GST enforcement wings led to the recovery of Rs 1,924 crore by way of blocking fraudulent ITC claims and the arrest of 168 individuals during the same period. According to data compiled over the past two fiscal years - 202
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FAQ :
In the financial year 2024-25, 25,009 fake firms were detected for fraudulently claiming Input Tax Credit (ITC).
The fraudulent ITC claims detected in FY 2024-25 amounted to a staggering £61,545 crore.
During FY 2024-25, £1,924 crore was recovered by blocking fraudulent ITC claims, and 168 individuals were arrested.
Under GST, ITC allows businesses to offset the tax paid on purchases against the tax payable on sales, preventing tax cascading.
Measures include enhanced data analytics, tracking suspicious e-way bill activity, Aadhaar authentication, intelligence sharing, and tightened GST registration norms with physical verification for risky applicants.
Enforcement measures include blocking fraudulently claimed ITC, suspending or cancelling GST registration, provisional attachment of assets, and legal prosecution.
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