GST officials booked over 8,000 cases involving fake ITC worth Rs 35,000 cr in FY21

GST officials booked over 8,000 cases involving fake input tax credit (ITC) of over Rs 35,000 crore in financial year 2020-21, while arresting over 400 persons in these cases.
 
Considering the rampant incidents involving fake ITC, the tax department launched a nationwide special drive against fake GST invoices on November 9, 2020, which is still continuing.
 
"During the financial year 2020-21 the CGST zones and the Directorate General of GST Intelligence (DGGI) have booked about 8,000 cases involving fake ITC of over Rs 35,000 crore. During the financial year 426 persons including 14 professionals such as CAs, lawyers and masterminds, beneficiaries, directors etc were arrested," the finance ministry said.
 
While the spread of coronavirus slowed down the drive to detect people behind fake invoices, the gradual lifting of lockdown and improved COVID-19 situation in different parts of the country has led to resumption of the drive in coordinated action at national level, the ministry said.
 
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The tax department detected over 500 cases of GST fraud, involving 1,200 entities, in the ongoing financial year, the release said, adding the number of arrests made by officers of CBIC is one of the highest in recent times.
 
"CBIC officers are using latest IT tools, digital evidence and also collecting information from other government departments to catch the fraudsters. Along with legislative and procedural changes in the law, the nationwide drive has contributed to better compliance and revenue collection," the ministry said.
 
The enforcement drive against fake invoice fraudsters and other GST evaders is likely to intensify with an objective to catch and book unscrupulous elements engaged in illegal activities to defraud the government exchequer, it said.
 
"Apart from cases of fake ITC, the DGGI and other CGST formations have also detected GST evasion involving misclassification, undervaluation and clandestine supplies of goods and services," the ministry said.