In a significant move to tackle the rampant issue of Goods and Services Tax (GST) fraud, the Indian government announced on January 7 that it had identified over 30,000 fraudulent firms in the eight months leading up to December 2023. GST officers uncovered 29,273 companies involved in submitting false claims for Input Tax Credit (ITC), amounting to a staggering Rs 44,015 crore.
This revelation comes amid a concerted effort to curb fraudulent registrations and underscores the government’s commitment to combating tax evasion while preserving the integrity of the GST regime. The actions taken against these dishonest companies have resulted in substantial revenue savings, totaling Rs 4,646 crore.
During the October–December quarter alone, authorities identified 4,153 fraudulent firms engaged in ITC evasion, with a combined value of approximately Rs 12,036 crore. Central GST Authorities played a crucial role in exposing 2,358 of these fake companies, contributing significantly to the overall effort.
Among the states, Maharashtra emerged at the forefront with 926 bogus firms identified in the ongoing drive against suspected ITC evasion. Following Maharashtra, Rajasthan (507), Delhi (483), and Haryana (424) reported notable numbers of fraudulent firms.
The identification of these fraudulent companies implicated in ITC evasion during the December quarter led to the preservation of revenue totaling Rs 1,317 crore. Of this amount, Rs 997 crore was safeguarded by preventing ITC, and Rs 319 crore has already been recovered.
