Crackdown on those making fake GST documents, tax evasion of Rs 20,000 crore caught

Ronit Kawale
Ronit Kawale - Senior Editor
3 Min Read
Crackdown on those making fake GST documents, tax evasion of Rs 20,000 crore caught


Money is saved through input tax credit.
Through this, GST liability is reduced.
ITC fraud cases come every year.

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New Delhi, Many cases of fraud have come to light in GST. According to a report, GST officials have detected fake input tax credit claims worth Rs 19,260 crore in the ongoing financial year. A total of 1999 such cases have been reported. Many such cases come to light every year. Last year also, 1,940 cases of fake input tax credit were reported in which refund of Rs 13,175 crore was sought.

Of this, officials recovered Rs 1,597 crore and 68 arrests were made. This year, there has been an increase of 49% in fraud in terms of rupees. Such fraudulent cases involve ITC claims where no actual supply of goods or services has been made. But the money is claimed through Input Tax Credit (ITC). The average rate of disposal of these cases is said to be 12.71%.

Also read- Is there any benefit in buying gold now, it increased by ₹ 11,000 in the last 6 months, where will it go in the next 6, experts told.

Where did most cases occur?
This time the maximum number of cases of fake input tax credit has come in Gujarat. After this comes West Bengal and Haryana. 241 such cases have been reported in Gujarat, 227 in West Bengal, 186 in Haryana, 168 in Assam, 143 in Rajasthan, 130 in Maharashtra, 122 in Karnataka and 105 in Delhi. However, in terms of amount, the biggest cases of fake ITC have come to light in Haryana and Delhi. Cracking down on fake ITC claims of GST input tax credit has been the biggest challenge for the department since the beginning and the department is continuously focusing on it.

What is input tax credit?
When a manufacturer buys a product, he pays tax on it. Whenever he sells any goods, he collects tax on it. The difference between these two taxes is adjusted in the input tax credit and the money is withdrawn from the GST department. In other words, GST liability is reduced. Understand from the example – The manufacturer sold the goods and paid tax of Rs 450 on it. Let us assume that a tax of Rs 300 was paid on the product purchased to make this item. The manufacturer will now deposit Rs 450 less GST by Rs 300. That means his GST liability will be only Rs 150 and not Rs 450. The manufacturer will claim input tax credit of Rs 300 in this situation.

Tags: Gst, GST collection, Gst latest news

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