Surge in Fake ITC Claims: GST Officers Detect Rs 36,374 Crore Fraud in 2023-24

Central GST officers detected a 51% increase in fake input tax credit (ITC) claims, amounting to Rs 36,374 crore in 2023-24. Minister of State for Finance Pankaj Chaudhary informed Parliament about the rise, citing arrested individuals and voluntary tax deposits. A complex web of entities complicates efforts to track fraudsters.

Central GST officers detected a substantial 51% increase in fake input tax credit (ITC) claims, reaching Rs 36,374 crore in the fiscal year 2023-24, according to a statement made in Parliament on Monday.

Minister of State for Finance Pankaj Chaudhary detailed the surge in bogus ITC cases, revealing that 9,190 cases were booked by central GST officers in 2023-24, resulting in the arrest of 182 individuals and voluntary deposits of Rs 3,413 crore. This is a significant rise compared to 7,231 cases and Rs 24,140 crore detected in the previous fiscal year, 2022-23.

Chaudhary emphasized the challenges in tracking fake ITC fraudsters, who often operate through intricate networks of entities spread across jurisdictions. He assured that these challenges are being addressed through coordination with multiple stakeholders, including law enforcement agencies.