GST officials files 8,000 cases in ITC frauds worth Rs.35,000 crore in FY21

Central GST zones and the Directorate General of GST Intelligence (DGGI) have booked about 8,000 cases involving fake input tax credit (ITC) worth more than ₹35,000 crore during the last financial year.

The ministry informed that CBIC officers are employing latest IT tools and digital evidence, as well as collecting information from other government departments to catch the fraudsters.

This result comes after a nationwide special drive against fake GST invoice scams launched on November 9, 2020, and is still ongoing, in light of the high proportion of fake ITC availability and utilisation.

During the financial year, 426 persons including 14 professionals such as CAs, lawyers and masterminds, beneficiaries, directors etc were arrested,” the Revenue department said in a statement. The ministry had launched a nationwide special drive against fake GST invoice scams on November 9, 2020, and is still ongoing. The ministry noted that the drive against fraudulent GST invoices slowed down over the past two three months due to the Covid-19 pandemic and subsequent lockdowns and restrictions.

In this nationwide drive against unscrupulous entities, Directorate General of GST Intelligence and CGST zones under CBIC have during the current financial year detected more than 500 cases involving 1,200 entities and arresting 24 persons. The number of arrests made by officers of CBIC is one of the highest in recent times,” it said.

The ministry informed that CBIC officers are employing latest IT tools and digital evidence, as well as collecting information from other government departments to catch the fraudsters. It also warned that the crackdown will be intensified in the coming week.